Tax Considerations for U.S. Citizen & Resident Alien Students

Tax Considerations for U.S. Citizen & Resident Alien Students

This page addresses tax considerations for U.S. Citizen & Resident Alien Students, Scholars and Fellows. All students, scholars and fellows receiving financial support or wages from Stanford must have a U.S. social security number or ITIN (Individual Taxpayer Identification Number) with the University. Support provided and/or wages paid to students, scholars and fellows by the University are taxable for the recipient.

On this page:

For All Students, Scholars and Fellows:

Important Disclaimer

The items presented here are for general information only and do not constitute tax advice. The University does not endorse nor independently confirm the information presented in any other web site referred to in this document. The University encourages users of this page to seek qualified tax counsel when appropriate.

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If You Work at Stanford: Taxation of Student Pay

Student employee pay is subject to federal and state income tax withholding and is reported on Form W-2. Work performed in California is subject to withholding and reporting to California, regardless of residency status of the student. Registered degree-seeking students do not pay FICA (Social Security and Medicare) taxes and California Voluntary Disability Insurance.

See Quick Steps in the Staff - Payroll for Employees section of this web site for instructions to help you:

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Income Exclusions for Scholarships

Scholarships are excludable from the recipient's gross income when the following conditions are met:

  • An award must be a qualified scholarship (the award can only be applied to tuition and mandatory fees).
  • The recipient must be a candidate for degree (matriculated).
  • The award must be for the purpose of studying or conducting research at an educational organization.

For IRS discussion of these exclusions, visit https://www.irs.gov/taxtopics/tc421.html.

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Tax Forms Sent to Students from Stanford

  • The University is required by the Internal Revenue Service (IRS) to file an annual Tuition Statement (IRS Form 1098-T) for each student who is a U.S. citizen or permanent resident pursuing a degree, and for whom a reportable transaction is made, e.g., tuition, student activity fees and any scholarships or grants received. A copy of the 1098-T is mailed to the student in January each year. This information is provided to assist taxpayers in determining eligibility for Education Tax Credits. See Overview: Education Tax Credits.

    Eligible students may electronically view and print their individual 1098-T form by going to the Affiliated Computer Services web site and then clicking Access My Record.

  • For wages (paid twice a month), a W-2 will be sent annually, at the end of January, by the Payroll Department. See Quick Steps: Order Duplicate W-2 Statement if you do not receive this form.
  • For prizes and awards greater than $600, IRS Form 1099 will be sent annually, at the end of January. Contact the Buying and Paying Support Center if you do not receive Form 1099.

If you are an international student, see Overview: Tax Considerations for Non-Resident Alien Students.

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Tax Forms for Students to File with Governmental Agencies

Tax forms for students to file at calendar year end with the IRS and California Franchise Tax Board include:

  • Federal Form 1040
  • California State Form 540

Simpler versions of tax forms such as the 1040-EZ or 1040NR-EZ may be used when circumstances permit. Information for these forms may be found at the following sites:

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Where to Get Assistance

For assistance with tax withholding and tax form issues, submit a HelpSU request (Category: Central Office, Type: Payroll). Payroll will respond within 1 business day.

Anyone needing advice or interpretation of tax law should consult a competent tax counsel or attorney.

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For Graduate Students, Scholars and Fellows:

Tax Considerations for Recipients of Graduate Financial Support (Fellowships and Assistantships)

For degree-seeking (matriculated) students, the tuition portion of fellowships and assistantships is exempt from tax. Nonmatriculated students are subject to tax on any tuition support received.

Fellowship stipends and assistantship salaries are considered taxable for the recipient. The tax obligation varies according to the student's total income, dependency status, treaty status for international students, and individual circumstances.

Tax is not withheld from student quarterly fellowship stipends or postdoctoral scholar / non-matriculated monthly fellowship stipends paid to U.S. citizens and Permanent Residents. The recipient is responsible for making any estimated tax payments. See Form 1040ES at the Internal Revenue Service web site and Form 540ES at the California Franchise Tax Board web site for information on making estimated tax payments.

If you are an international student, see Overview: Tax Considerations for Non-Resident Alien Students.

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Regulations for Taxation of Graduate Financial Support

  • Fellowship funds used to pay for tuition, books, and fees which are required for enrollment may be excluded from the income reported. Money used to pay for these items may not be subtracted from wage income.
  • Students will receive a W-2 form covering Stanford salaries, including assistantships. They will not receive a tax statement of fellowship stipends. Any fellowship received in excess of tuition and fees required for enrollment (health insurance, campus health services fee, ASSU fees and document fees) is taxable for the recipient.
  • If you are an international student, see Overview: Tax Considerations for Non-Resident Alien Students.

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For International Students

Tax considerations and regulations differ for non-U.S. residents. See also Overview: Tax Considerations for Non-Resident Alien Students.

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