The financial aid staff is not qualified to answer individual questions from students regarding their tax liabilities. U.S. tax law is extremely complex, and each individual’s situation varies. Each student is required under the law to seek to understand and comply with the tax law and to pay income tax in a timely manner.

According to the Tax Reform Act of 1986, all grant aid (scholarships, fellowships) that exceeds the cost of tuition and required fees, books, and related classroom expenses is subject to U.S. income tax. Columbia University does not withhold taxes on the fellowship checks of U.S. citizens and permanent residents. In addition, the University does not issue 1099 forms indicating the amount of stipend fellowship received by a student. Students are responsible for accurately reporting stipend amounts and for making estimated tax payments if appropriate. Receipts for required fees, books, and supplies should be retained to justify appropriate deductions on the tax return.

When fellows hold teaching and research appointments, a portion of the total stipend is subject to federal taxes and a W-2 form is issued from the University. The W-2 reflects only the monthly payments issued based on the instructional or research appointment earned during the tax year. It does include any other stipend payments issued to the student.

For international students, fellowships awarded are subject to taxation and 14 percent federal withholding on the amount in excess of tuition and fees. International students should receive the 1042-S form as tax documentation for their fellowship. Currently, the U.S. has tax treaties or agreements with roughly 40 countries and territories under which their citizens may be exempt from all or part of U.S. income tax. To see which countries have tax treaties and how these treaties affect an individual’s tax status, students should consult IRS publication #901(U.S. Tax Treaties) or check with their consulate. International students may also wish to consult with the International Students and Scholars Office (ISSO) about their taxation responsibilities.

Note: The University does not offer professional tax advice. However, information on taxation issues is available on the Columbia University Document Service Center’s Income Tax Forms and Resources Page at http://www.columbia.edu/cu/lweb/  .

Additionally, a tax workshop, sponsored by GSAC, is held every year in March. A representative from H&R Block is invited to answer questions students might have about completing their tax returns. Check the GSAC Web page at http://www.columbia.edu/cu/gsac/ for further information. The ISSO offers workshops on international taxation, presented by certified public accountants. Contact ISSO at  isso@columbia.edu or 212-854-3587.

Some students who pay for their own tuition may be eligible for the Lifetime Learning Tax Credit. To check your eligibility, consult IRS Publication #970 Tax Benefits for Higher Education available on the IRS’ Web page, http://www.irs.gov/.