US Tax Information

Predoctoral Fellows & Training Grant Recipients 0

Foreign Nationals seeking taxation information should refer to the Global Pay section.

The University does not withhold taxes or report your fellowship or training grant on a W-2. If you are a candidate for a degree and use the fellowship or training grant to pay for qualified educational expenses, it will not be considered federally taxable income to you.

Any amount you receive that is not used for qualified educational expenses is taxable.  The IRS defines qualified educational expenses as tuition and fees required to enroll at or attend an eligible educational institution; and course-related expenses, such as books, supplies, and equipment that are required for the courses at the eligible educational institution.

Amounts used to pay for non-qualified expenses such as room and board, travel, research, clerical help, or equipment and other expenses that aren’t required for enrollment in or attendance at an eligible educational institution are considered taxable.

IRS publication 970 provides details and a worksheet for determining the taxable portion of your fellowship or training grant.

Predoctoral Fellows and Trainees 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.

These fellowships and training grants are not taxable in Pennsylvania, because the primary purpose is to further the recipients education or training, and either they are not payments for services rendered or the benefits from any services performed are very minimal. Pennsylvania provides guidance on the taxability of fellowships and grants under section b of Title 61 Pa. Code §101.6.