For Fellowship Stipend Recipients

Washington University staff members are unable to provide personal tax advice. If you have additional questions, please consult a tax advisor.

There are two issues regarding receiving fellowship stipend payments of which to be aware: (1) You may need to make estimated tax payments throughout the year and (2) Fellowship stipends may constitute taxable income that is reportable on your annual tax return as taxable scholarship income. See links at the bottom of this page for additional information.

Taxability of Stipend Payments

Stipend payments are subject to tax when applied to living expenses, health insurance, etc. They are not subject to tax if applied to books and tuition required for a formal degree program.

Stipend payments are not wages or earned income. They cannot be used to claim certain credits, such as the Earned Income Credit, to make Traditional or Roth IRA contributions, or to make Keogh plan contributions. Note: To the extent that you have earned income from other sources, you may be able to use that income to claim certain credits or make certain savings contributions.

Stipend Payment Withholding Rules

US citizens, permanent residents, or resident aliens (US persons) for US tax purposes:

  • Under US tax law, the university is generally not allowed to withhold on stipend payments to US persons.
  • Under Missouri tax law, the university is generally not allowed to withhold on stipend payments to US citizens, permanent residents, or tax residents.

Nonresident aliens for US tax purposes:

  • Under US tax law, the university is generally required to withhold on stipend payments to nonresident aliens. In the event that the individual is eligible for a reduced rate of withholding under a tax treaty, the university may not be required to withhold. In this case, the individual is also not required to make estimated tax payments to the IRS.
  • Under Missouri tax law, the university is generally not allowed to withhold on stipend payments to nonresident aliens.

Reporting Stipend Income To You

US citizens, permanent residents, or resident aliens (US persons) for US tax purposes:

  • Fellowship stipends paid to US persons are not required to be reported to you by the university on any type of IRS form.
  • Total stipend income you received from the university during the calendar year will be provided to you on a stipend letter available for download in HRMS Self Service around January 15. You will receive an email notification in January when the letter is available. This letter is informational only and should not be submitted to the IRS. Additionally, the letter is not a substitute for IRS Form 1099-MISC or a Form W-2.

Nonresident aliens for US tax purposes:

  • Fellowship stipends paid will be reported on Form 1042-S no later than March 15.
  • Forms 1042-S will report the total taxable stipend amount you received from the university during the calendar year as well as any tax withholding that was applied.

Tax Return Preparation Assistance

In the event that you require tax return preparation assistance, TIAA has provided a list of tax preparers who may be available to assist you at your cost. The university does not endorse these or any other individual tax preparer. The list is provided to assist fellowship stipend recipients in identifying CPAs in the St. Louis area, but should not be used as a substitute for determining whether a particular CPA is qualified to meet your needs. You are not limited to the accountants on this list and may elect to utilize the services of someone else of your choosing.  Washington University will not be liable for any damages, losses, or causes of action or any nature that may arise from any services provided by the individuals on this list.

TIAA CPA Referral List

Additional Resources

  • Internal Revenue Service main customer service line (1-800-829-1040)
  • State of Missouri local tax information line (314-877-0177)
  • IRS Publication 970 – Tax Benefits for Education
  • IRS Publication 519 – US Tax Guide for Aliens