Certain elements of the financial support package are considered to be income, and are therefore subject to taxes. Note that tax considerations vary based on residency status, the details of one’s support package, and other concerns. For guidance regarding your specific situation, confer with the IRS, an accountant, or another tax professional. Please direct all inquiries to the IRS website or 800-829-1040 and/or an independent tax agent.Basic Tax Guidelines & Documents to SaveThe following is for informational purposes only. While tuition awards are non-taxable in the United States, various types of stipend awards are subject to specific reporting and tax treatments. If you are a U.S. citizen or Permanent Resident, it is important to keep records and save this information for the preparation of a personal tax return. Tuition Support Tuition support is considered a qualified expense and is therefore non-taxable in the United States. Fellowships Fellowship stipends are subject to federal income taxes only, not New Jersey state taxes. U.S. citizens and permanent residents: Federal taxes are not withheld or reported by Princeton University. You 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. Non-residents and international students: Federal taxes are withheld and reported by Princeton University. Applicable tax treaty exemptions are applied. Save these documents: Payroll stub: Save your last paystub for the calendar year, which will indicate total earnings for the tax year. It will reflect your full-year fellowship stipend award. Assistantships (ARs / AIs) Stipends from Assistantships in Research (ARs) and Assistantships in Instruction (AIs) are paid as salary, and are therefore subject to both federal and state income taxes. Any federal or state taxes withheld by the University on assistantships, subject to the above, are reported via a W-2 Form at the end of the calendar year. Withholding is at the graduated rates determined by the student's filing status on IRS Form W-4. U.S. citizens and permanent residents: Federal and State taxes are withheld or reported by Princeton University. Non-residents and international students: Federal and state taxes are withheld or reported by Princeton University. Applicable tax treaty exemptions are applied. Save these documents: W-2 statement: Stipends from assistantship awards are provided as salary, with federal and state taxes withheld by Princeton. Other Awards Save these documents: Form 1099: Provided by the University at calendar year-end if you receive a prize. Letter from the Office of Finance & Treasury: If you receive one-time payments that are not considered prizes, such as an award for scholarly travel, you will receive a letter that reflects the amount of 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. Additional Tax Resources General Tax Information Basic Tax Guidelines and Tax Charts Student Tax Information (Finance & Treasury) Taxation of Scholarships & Fellowships (Finance & Treasury) What you should know about Payroll Taxes (Finance & Treasury) Quarterly Estimated Taxes, Form 1040ES with instructions For International Students Payroll Tax Issues for Foreign National Students (Finance & Treasury) Tax Information for International Students (Davis International Center) Information for Foreign Students and Scholars (IRS) Related Articles Net Pay Tool Explained (requires authentication) Graduate Student Financial Support Frequently Asked Questions (FAQ) (requires authentication) Student Payments: Tax Compliance