Foreign Nationals seeking taxation information should refer to the Global Pay section.
The University does not withhold taxes or report your fellowship or grant on a W-2. However, unless you are a candidate for a degree and use the fellowship or grant to pay for qualified educational expenses, it will be considered federally taxable income to you. IRS Publication 970 provides details.
The taxable amount includes your fellowship or grant payment plus the value of all University-provided benefits. These amounts are listed on your pay statement under the heading Taxable Fringe Benefits. Since no W-2 is provided, Postdoctoral Scholars should use their final pay statement of the calendar year as documentation for tax filing purposes and may be required to pay estimated taxes on a quarterly basis to avoid any underpayment penalties. Refer to IRS Publication 505,Tax Withholding and Estimated Tax, Ch. 2, for additional information.
The State of Pennsylvania provides guidance on the taxability of fellowship and grants under section b, line 5 of Title 61 Pa. Code §101.6. Local earned income taxability follows PA regulations for all municipalities, except Philadelphia.
If a Postdoctoral Scholar performs services for the University for which they receive compensation, this payment will be considered wages. Applicable taxes will be withheld and these earnings will be reported on a W-2.