Tax

Form 1099-MISC reports the following non-employee payments to the IRS:

• Prizes
• Awards
• Fees for services
• Royalties

See the IRS Forms and Publications for more information. If you have questions regarding the 1099-MISC form you received, or if you did not receive one when you believe your should have, email us at tax@cornell.edu.

Starting with the calendar year 2018, Form 1098-T reports payments made for tuition and related expenses versus the amounts billed for tuition and related expenses. The 1098-T also reports financial aid awarded to students enrolled in courses at Cornell during the calendar year for which they receive academic credit.

Form 1098-E reports the amount of interest paid on a student loan. Each student receiving a 1098-E form is responsible for determining whether he or she is eligible to deduct the interest in accordance with IRS regulations.

See IRS Forms and Publications for more details. For other questions about the 1098-E form, contact the Student Loan office, (607) 255-7234.

Form 1042-S reports wage payments for foreign nationals who are exempt from U.S. taxation under a tax treaty. This form is also used to report non-wage payments for foreign nationals who are also nonresident aliens. Foreign nationals qualified to receive the 1042-S must attach the form to their tax returns.

Wages subject to U.S. taxation are reported on a W-2 form, not the 1042-S form.

To avoid new employee frustration, it is important that all university staff and faculty members understand and consistently apply the rules surrounding the taxability of recruiting and moving expense reimbursements. This involves clear communication to recruits, both verbally and in our offer letters, of the IRS rules, so that we set appropriate expectations throughout the recruiting and hiring process. Please note that the university does not cover moving expenses for all new or transferring employees; paying for such items is entirely at each unit's and human resource's discretion.

Tax Reporting for Employees

Sales and use taxes are consumption taxes imposed at the U.S. state and/or local level on the purchase of taxable property or services. Whether an item or service is taxable depends on the laws of the state and local jurisdiction where the goods are delivered or the services are received. Sales tax rates can vary significantly by locality and can range from a few percent to upwards of 10%.

All foreign nationals who receive payments from Cornell University, other than travel reimbursement and honorarium, must complete the online Foreign National Questionnaire through the Foreign National Information System (FNIS). The information provided through FNIS will be used to evaluate the foreign national's U.S. tax status, i.e., eligibility for exemption from income or FICA taxes, etc. 

To comply with U.S. Immigration Law regarding payments to foreign visitors, Cornell requires honoraria and expense reimbursement recipients who are visitors from foreign countries and enter the U.S. on a B-1 visa or without a visa to complete the Foreign Visitors Honoraria/Expense Reimbursement Attestation form. In limited circumstances, educational institutions are permitted to pay foreign visitors on B-1 visas. Individuals from waiver countries are also included.

There are two types of federal ID numbers: The U.S. "Social Security Number (SSN)," and the U.S. "Individual Taxpayer Identification Number (ITIN)."

Note: Foreign nationals and units at Cornell also may contact the below offices with specific questions about U.S. Federal ID numbers: