Foreign National Graduate Stipend Appointments:
Determined by their departments, graduate students may receive a stipend/wage appointment.
A stipend appointment is a salaried earning which is taxed at the time of payment, unless treaty benefits prevail. It is reported on a W-2 form and a 1042-S form (the treaty benefit portion). These types of appointments are a Research Assistant (RA), Teaching assistant (TA),Teaching Fellow (TF), or a Proctorship.
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Stipends paid to nonresident aliens who are outside of the U.S. for less than 90 days, will remain on the Payroll system.
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Stipends paid to nonresident aliens who are outside of the U.S. for more than 90 days, will be removed from Payroll and paid through the Accounts Payable Office. Payments are considered foreign sourced income. Students must register as a supplier using the Student Payee Registration Form and are responsible for taxes and compliance.
Foreign National Graduate Fellowship Appointments:
Determined by their departments, graduate students may also receive a fellowship appointment. Fellowship appointments are a Fellowship, Traineeship, External Funding, or a UTRA/Link payment.
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Nonresident alien graduate fellowship appointments received inside of the U.S. are taxed at the time of payment, unless a treaty benefit applies, and is reported on a 1042-S form.
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Nonresident aliens receiving a fellowship appointment outside of the U.S. are paid through the Accounts Payable office and considered foreign sourced income. Students must register as a supplier using the Student Payee Registration Form and are responsible for taxes and compliance.
Payments are made via Payroll, Accounts Payable, or Zelle, and will not be reported on a W-2 or 1099 form. Therefore it is important for students to maintain a record of all fellowship payments received each year from all sources.
See the links below for IRS guidance on fellowships: