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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. Some students who
pay for their own tuition may be eligible for the Lifetime Learning Tax Credit.
To check eligibility, students should consult IRS Publication #970 Tax
Benefits for Higher Education available on the IRS’ Web page at http://www.irs.gov/.
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/indiv/dsc/tax.html/.
Additionally, a tax workshop sponsored by GSAC is held in March, at which a representative
from H&R Block answers questions students
have about completing their tax returns. Check the GSAC Web page at http://www.columbia.edu/cu/gsac/
for further information.
Fellowships awarded to international students are subject to taxation and
14% 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, international 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.
The ISSO offers workshops on international taxation,
presented by Certified Public Accountants. Contact ISSO at isso@columbia.edu or 212-854-3587.
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