Tax Obligations for
Graduate Students
The IRS provides a
comprehensive guide on tax obligations for students (see
http://www.irs.gov/publications/p970/index.html).
The following summary may help you begin.
US CITIZENS
At Johns Hopkins
Medical School, graduate students are supported by sources classified
as providing "fellowships" or "wages." Some examples are
listed below.
Fellowships:
- Training grants
- Individual NRSA fellowships
- External fellowships (NSF, Ford, Samsung, Merck, etc)
- Departmental funds (usually, first-year students only)
Wages:
- Research grants or contracts from the NIH or other organizations
- Departmental funds (second-year students and beyond)
- Teaching assistantships (rare at SOM)
Both "fellowships"
and "wages" are subject to federal and state tax, but the
University withholds funds only for "wages." Students must pay
quarterly estimated taxes if they receive funds as "fellowships."
Funds provided to cover
tuition and required fees and/or educational expenses are non-taxable
for full-time students and need not be reported. This category will
include student health insurance fees, which are a requirement of
enrollment.
NONRESIDENT ALIENS
International students
typically receive financial support from the sources listed above.
As such, these funds are taxable at the federal level unless
the student's country of origin has established an appropriate tax
treaty with the US government. Countries with tax treaties are
tabulated at http://www.irs.gov.
Typically, such countries provide tax exemptions for educational
expenses for a period of 2-7 years. The specific benefits provided
to students and trainees are documented at the website listed above.
(At times, these tax treaties are honored at the state level, but not
in Maryland.)
OTHER EDUCATIONAL INCOME
Students may earn
additional income from tutoring, from leading small group
discussions, or other activities, including the one-time 'bonus'
provided to those earning external fellowships. This income is
taxable according to the guidelines given above. For international
students, tax treaties (if present) may limit the dollar amount of
non-taxable additional income, but the limit is generally above the
amounts earned by students on this campus.
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