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Graduate School.

Tax Liability

OSU does not withhold taxes from fellowship stipend payments made to US citizens and resident aliens and does not currently report stipend payments on an annual IRS Form 1099 (Miscellaneous Income) for these individuals. However, graduate fellows who are US citizens and resident aliens are responsible for paying all income taxes that may become due as a consequence of receiving graduate fellowship stipend payments.

To ensure compliance with IRS tax withholding requirements, OSU must withhold tax on any taxable fellowship stipend disbursed to nonresident aliens. In addition to withholding taxes from nonresident alien graduate fellowship stipend payments, OSU issues an IRS Form 1042-S (Foreign Persons US Income Subject to Withholding) to nonresident aliens at the end of the calendar year. Nonresident aliens whose country of origin has an existing tax treaty with the United States may be exempt from tax withholding. Please contact the fellowship coordinator in the Office of Post Award Administration for more details.

The institutional health insurance subsidy and contribution toward the administrative fee are not considered educational expenses, nor are they treated as pre-tax deductions based on employment. As a consequence, at the end of each calendar year OSU will issue an IRS Form 1099 (Miscellaneous Income) to US citizen and resident alien graduate fellows for the value of the institutional health insurance subsidy plus administrative fee. For nonresident aliens, the graduate fellow health insurance subsidy plus administrative fee will be reported on the annual IRS Form 1042-S.

Oregon State University staff members are not tax professionals and cannot provide tax guidance to students. There are a number of IRS forms and publications that may be helpful for determining tax liability, including the following:

For more information, students are encouraged to contact the Internal Revenue Service at; 1-800-829-1040 and/or consult a tax professional.