Dear XXXXXXX -
As a cash basis taxpayer, you are required to report your income in the year paid. Thus the entire $150,000 will be included in your 2008 income. The maximum federal rate is 35%, unless you are including state taxes too.
You may be able to itemize deductions in 2008, possibly lowering the federal rate a little.
Why a stipend in one lump sum?
Will there be withholding.
Certified Public Accountant (CPA)
CPA, Over 29 yrs experience w/individuals and small businesses. Masters in Tax, Divorce Specialist