Frequently Asked Questions

For a less-than-full AI, the tuition and stipend amounts provided by the AI are prorated according to the % AI assigned. In your case, a 3 hour AI represents a 50% AI commitment.  Therefore, you will receive 50% of the AI tuition and stipend rates for the term. 

Assuming you were on a University Fellowship, the tuition and stipend amounts of your University Fellowship award will then be adjusted proportionately. Because you have a 3 hour or 50% AI, you will receive 50% of the University Fellowship tuition and stipend rate to provide the remainder of your financial support.

As the stipend rate for an AI is slightly higher than the University Fellowship stipend rate, you will notice that your total stipend award for the term will be slightly higher to reflect the portion provided by the AI.

The remainder of your financial support for the year will be provided by your department.  To supplement your $10,000 stipend award, your department will typically provide you with an Assistantship in Research (AR).  In this case, given that your external award does not include a tuition component, the AR will include a full tuition component.  For your stipend, you will receive a stipend from the AR to bring your combined stipend award from the AR and your external award up to the full 10-month AR stipend rate.

While tuition awards are non-taxable in the United States, the various types of stipend awards received by students are subject to different reporting and tax treatments.  As a result, it is important to keep records and save the information you will need in order to prepare your personal tax return. Depending on the types of income received during the calendar year, this information or documentation may include:

W-2 Statement:  You will receive a W-2 statement from the University if you have received an Assistantship in Instruction or an Assistantship in Research during the calendar year.  The stipends from assistantship awards are provided as salary, with both federal and state taxes withheld by Princeton.

Payroll Stub:  If you are supported by a fellowship, you will need to save your last paystub, as it will reflect your full-year stipend award, which is subject to federal taxes only.  However, Princeton does not withhold federal taxes from or report on fellowship stipend awards.  Therefore, it is the student’s responsibility to pay federal taxes on fellowship stipend awards.  In addition, U.S. Citizens and permanent residents may be required to pay quarterly estimated taxes on fellowship stipend awards. See IRS Form 1040-ES and Instructions for more information on paying quarterly taxes.

IRS Form 1099:  If you receive a prize as part of your financial support, you will receive an IRS Form 1099 from Finance and Treasury that reflects receipt of this prize.  Because prizes are considered fellowship stipend support, they are subject to federal income taxes.

Letter from the Office of Finance & Treasury:  If you receive any one-time payments that are not considered prizes, such as an award for scholarly travel, you will receive a letter from the Office of Finance & Treasury that reflects the amount of such payment.  If you return any unused amounts to the awarding department or program, it is important to receive documentation so that you can deduct this amount from the original payment amount for tax purposes.

For more information on tax issues for U.S. citizens and permanent residents, refer to the Office of Finance and Treasury’s website.