In preparing your personal income tax return, please consult with your own tax advisor, because University Financial Services is not authorized to provide individual tax advice. You may, however, find it helpful to read the IRS publication relevant to your personal situation:
• If you are a U. S. citizen or resident for tax purposes, who received fellowship amounts for studying, teaching or researching in the U. S., then see IRS Publication 970, Tax Benefits for Education, which is available at http://www.irs.gov/publications/p970/index.html
Fellowship amounts are subject to FICA only if they are deemed to be “wages” for employment tax purposes. Whether fellowships are wages is an inherently factual determination, requiring consideration of all relevant facts and circumstances of the program.
A fellowship is any amount paid or allowed to, or for the benefit of, an individual to aid such individual in the pursuit of study or research. A fellowship may take the form of: (i) payment(s) to the recipient, such as stipend payments; (ii) reimbursement or payment of expenses, such as travel expenses, to or on behalf of an individual; or (iii) a credit against an existing term bill or a reduction in the amount owed by the recipient to an educational organization in connection with the pursuit of study or research.