Tax Implications

The federal (U.S) tax implications of student fellowship and internship payments vary depending upon the citizenship of the student receiving the award.

Information provided here is for the purpose of making fellowship and internship recipients aware of their individual U.S income tax reporting responsibility; it is not intended as legal or tax advice, or as a definitive interpretation of the law.  Each fellowship and internship recipient is personally responsible for his/her own individual tax preparation and payment. Specific questions regarding the tax treatment of fellowships and internships should be directed to a professional tax adviser or the Internal Revenue Service.

For U.S Citizens and U.S Lawful Permanent Residents

Fellowship and internship recipients will not receive any additional tax reporting notices from the College and the College is not required to report fellowship and internship payments to the IRS on either Form 1099 or Form W-2.  However, fellowship and internship payments are generally includable in gross income for federal income tax purposes; it is the recipient’s responsibility to report taxable non-qualified scholarship, fellowship, and internship payments to the IRS on his/her personal income tax forms.

For International Students

The College is required by U.S tax law to withhold 14% federal income tax from fellowship and internship payments to students who are nonresidents for U.S tax purposes, unless the recipient can claim an exemption provided by a U.S tax treaty.  Annually in January, the College reports taxable scholarship, fellowship, and internship 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 withholding or IRS Form 1042-S.