Taxes for Graduate Students

The following general information is offered as a resource and should not be considered tax advice. Your individual situation may not be covered by this information. Check out Rackham's Finances page for additional information. Tools to free file can be found on the IRS webpage.

Fellowship Holders:

All income that doesn’t go directly to tuition, fees and benefits is subject to taxation and must be reported on Federal and Michigan State tax forms. This includes Stipend Fellowships, Debit Funds, and any other funds you receive from the University, that isn’t considered a qualified scholarship. Fellowships for tuition and fees are considered “qualified scholarships” and thus are exempt from taxation.

If you are receiving a stipend and are not having tax withheld from it, it’s likely that you are responsible for paying quarterly estimated tax. Check out this unendorsed article about quarterly taxes.

US Citizens and Resident Aliens will not receive a year‐end form with reporting information about your fellowship. It is the responsibility of the student to report their stipend fellowship accurately. If you are a nonresident alien you will receive a Form 1042S at calendar year‐end for the amount you received in fellowship or scholarship funds.

Employee (GSI/GSSA/GSRA/Temp):

Salary from any employment at the University is subject to taxation, and will be withheld from your paychecks, and reported with your W‐2 form at the end of each calendar year.

Additional Information

General UM tax information

Information about taxes for Non‐Resident Alien students:

• http://www.finops.umich.edu/payroll/foreign

• http://www.internationalcenter.umich.edu/taxes/

Unendorsed article about tax returns for graduate students on a stipend

Questions

For tax related questions, you can contact the Payroll Office by sending an email to payroll@umich.edu, or by calling one of the numbers here.

You can also contact the IRS directly by calling 1‐800‐829‐1040 or visiting their website: www.irs.gov