Student Fellowship Tax Considerations
The federal (US) tax implications of student fellowship payments vary depending upon the citizenship of the student receiving the award.
Information provided here is for the purpose of making fellowship recipients aware of their individual US income tax reporting responsibility; it is not intended as legal or tax advice, or as a definitive interpretation of the law. Each fellowship recipient is personally responsible for his/her own individual tax preparation and payment. Specific questions regarding the tax treatment of fellowships should be directed to a professional tax adviser or the Internal Revenue Service.
For US Citizens and US Lawful Permanent Residents
Fellowship recipients will not receive any additional tax reporting notices from the College and the College is not required to report fellowship payments to the IRS on either Form 1099 or Form W-2. However, fellowship payments are generally includable in gross income for federal income tax purposes; it is the fellowship recipient’s responsibility to report taxable non-qualified scholarship and fellowship payments to the IRS on his/her personal income tax forms.
For International Students
The College is required by US tax law to withhold 14% federal income tax and 5% state income tax from fellowship payments to students who are nonresidents for US tax purposes, unless the recipient can claim an exemption provided by a US tax treaty. Annually in January, the College reports taxable scholarship/fellowship income and tax withholding for the previous tax year to individuals who are nonresidents for tax purposes and to the Internal Revenue Service on IRS Form 1042-S. Please contact the Payroll Office with questions regarding tax wihholding or IRS Form 1042-S.
Resources Available at www.irs.gov
- Publication 970, Tax Benefits for Education
- Publication 519, U.S. Tax Guide for Aliens
- Form 1040-EZ, Income Tax Return for Single and Joint Filers With No Dependents
- Form 1040-NR, U.S Nonresident Alien Income Tax Return
- From 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents
- Additional forms and publications can be obtained from the Internal Revenue Service at 1-800-827-FORM or http://www.irs.gov/formspubs/index.html