Fellowship Recipients

It is important for fellowship/scholarship recipients to be aware of the tax implications of money received. In addition, a foreign national student may have a tax treaty agreement between his/her home/citizenship country and the U.S. that supersedes U.S. tax laws (see Payments Allowed by Visa Type).

Fellowships/scholarships are generally tax-free under the following circumstances:

• The student is enrolled in a degree program at an accredited university
• The fellowship/scholarship is used to pay the following qualified expenses, unless the terms of the fellowship/scholarship state otherwise:

• Tuition
• Fees
• Books
• Supplies (if required by all students in the course)
• Equipment (if required by all students in the course)

To determine the amount of a fellowship/scholarship that is tax-free, all other education benefits must be factored in. Money received for services (past, present, or future) may be taxable. Each student is responsible for filing the necessary returns (federal and/or state) and paying any income tax owed in a timely manner. Filing may be required whether or not a W-2 form is received. The filing deadline is April 15 of each year.

As a responsible recipient, each student must verify what money is deemed taxable and what money is considered tax-free. For further clarification, see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information. Note that this link may not contain information about the newest Tax Cuts and Jobs Act passed in December 2017.

Note: Cornell does not give out personal tax advice. It is the responsibility of each individual to know how specific tax laws apply to his/her situation.

 If you have questions, please contact us.