Income Tax Information

Income Tax Information for Graduate Assistants

Reporting Your Scholarship/Fellowship

US citizens & US tax residents:

1. Fellowship amounts in excess of what you pay out-of-pocket for tuition, books, and required fees/supplies is considered taxable income by the IRS.
2. You are responsible for making the computation and including it as income on your tax return.
3. The fellowship will not be reported on a 1099 or W-2 form; however it may be reported on the 1098-T form.
4. No taxes are withheld, so you may wish to make an estimated tax payment to the IRS using FORM 1040-ES.

If you file Form 1040EZ:

1. Include the taxable amount of your scholarship or fellowship on line 1.
2. Print "SCH" and any taxable amount not reported on a W-2 form in the space to the right of the words "W-2 form(s)" on line 1.

If you file Form 1040A or Form 1040:

1. Include the taxable amount on line 7.
2. Print "SCH" and any taxable amount not reported on a W-2 form in the space to the left of line 7 on Form 1040A or on the dotted line next to line 7 on Form 1040.

International students who are considered to be nonresidents for tax purposes:

1. You should be referred to the Payroll Office prior to receiving your fellowship payment.
2. The Payroll Office will check to determine whether you are a nonresident for tax purposes and whether there are any tax treaty benefits available to you.
3. Your cash fellowship payment will be reported to the IRS and to you on a 1042-S form, which is distributed in February of the next calendar year.
4. If you do not have a tax treaty benefit or if your fellowship payment exceeds the limits of your tax treaty benefit, then 14% tax will be withheld from your payment.
5. You are responsible for filing a nonresident tax return (1040-NR or 1040-NR-EZ) the next year. You may claim a refund of excess taxes withheld on that return.
6. The International Students & Scholars Center hosts an annual tax workshop every March to provide you information about US tax laws and your responsibilities.

For more information, call Mike Ballow at (850) 644-9464 or visit www.vpfa.fsu.edu/control/.