Taxes

Most graduate students will receive some financial support either from Stanford or from outside sources. Keep in mind that some components of graduate student financial support are taxable. This brief discussion of taxes is not to be considered tax advice.

U.S. Tax law regarding graduate student aid and federal income tax says:

  • For degree-seeking students, the tuition portion of fellowships and assistantships is exempt from tax. Non-matriculated students are subject to tax on any tuition support received.
  • All stipend and salary payments are considered taxable income:
    • Salary payments, including assistantship compensation, are subject to withholding tax. The yearly amounts paid and taxes withheld are reported on a W-2 at year end.
    • Fellowship stipends are not subject to withholding (except for non-resident aliens). Students on fellowship without withholding are encouraged to obtain the 1040-ES and file estimated taxes.
    • Fellowship stipends paid to international students are subject to a 14% withholding, regardless of the number of dependents.
    • No W-2 is issued for fellowship income. For non-resident aliens only, a 1042-S is issued in early March.
    • The amount of tax varies according to the student's total income, dependency status, treaty status for international students, and individual circumstances.
    • Unless the student is from a country with an applicable tax treaty, fellowship stipends paid to international students are subject to a 14% withholding, regardless of the number of dependents.
  • Salary and fellowship payments to residents of certain countries which have tax treaties with the U.S. may be exempted from withholding (partially or entirely) according to the wording of the specific treaty article. The Controller’s Office has information on the treaties as well as exemption claim forms.
  • Fellowship funds used to pay for tuition, books, and fees which are required for enrollment may be excluded from the income reported. Money used to pay for these items may not be subtracted from wage income.
  • Students will receive a W-2 form covering Stanford salaries, including assistantships. They will not receive a tax statement of fellowship stipends. The check stubs are the student's record of these payments.

Need More Help?

  • Where needed, students should seek competent tax counsel.
  • The Controller's Office has tax information for students. Questions and answers, links to tax forms, and other current resources.
  • The IRS provides a great deal of information

Back to top