Tax Information

Your research award or stipend may be considered taxable income.

Tax Information for research grants and stipends

Independent research and research assistantship programs (such as Sophomore Science Scholars, Junior Research Scholars, Presidential Scholars, etc.) are NOT considered employment. Stipends are issued and taxed differently than employment wages.

Please refer to IRS Publication 970 for detailed information on the taxability of awards. You may also consult with a tax professional or call the IRS help line at 800-829-1040 (be sure to tell them your question pertains to a stipend or grant payment issued to you by your college so that they can direct you to the appropriate person).

UGAR cannot assist in determining whether your award is subject to tax.

International Students

This is not applicable to students who are U.S. citizens or permanent U.S. residents.

International students (non-U.S. resident foreign citizens) who have a social security number and have been awarded a grant or research stipend may have the option of filing for an exemption from the 14% foreign tax withholding on their stipend payments, depending on whether or not your country of citizenship has an appropriate tax treaty with the U.S.

  • It is up to you to determine if your country holds a tax treaty with the U.S.
  • More information about tax treaties can be found on the IRS website. Refer to the purpose column in Table 2 to determine if your country has any sort of exemption for scholarships and fellowships.
  • If there IS an appropriate tax treaty, you may file a W8-BEN form to request the exemption from withholding. (Instructions for the W8-BEN)
  • Our grant/research stipends are processed separately from payroll checks and financial aid scholarships, and if you have filed a W8-BEN with another department on campus (such as financial aid), Accounts Payable may not necessarily have that information.

Here is the process by which you should submit your W8-BEN for it to apply to payments made through the Undergraduate Research Office:

  • Download and complete the W8-BEN. Keep copies for your records. Undergraduate Research will not keep copies for you in your file.
  • You must submit a completed W8-BEN form to UGAR (Parker House, Room 107) within 48 hours of submitting an online confirmation form or an acknowledgment and release form.
  • You must submit a W8-BEN each time you are expecting a grant or research stipend from Undergraduate Research. We do not keep copies of this form in our files.

The Accounts Payable Office (646-3878) or the Office of Visa and Immigration Services (646-3474) can help you determine if your country has a tax treaty. If there is no tax treaty, or if you do not have a Social Security Number, your stipend will be taxed 14%.  The Office of Undergraduate Research cannot provide tax advice or assistance beyond including your W8-BEN with each payment request, provided you submit the form to us.

 

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