TAX INFORMATION FOR STUDENTS RECEIVING FINANCIAL AID

Bryn Mawr has several forms of stipendiary aid to students: Teaching Assistantships, Graduate Assistantships, Fellowships, and Grants. All of this aid is taxable income, but how the taxes are managed differs depending on what kind of stipend is being paid, as well as on the citizenship of the student receiving the stipend.

Assistantships require services in return for payment and are therefore treated as wages. Taxes are withheld from all TA and GA stipends and are reported on Form W-2 in accordance with the regulations of the Internal Revenue Service (IRS).

Fellowships and Grants are not payments for services, but they are taxable except for tuition and course-related expenses. Taxes are not withheld from Fellowship and Grant stipends paid to U.S. citizens and resident aliens, and the College does not report these payments. However, recipients of such payments are required by law to report the income themselves on their tax returns. The IRS makes the recipients of Fellowships and Grants solely responsible for determining to what extent the stipends they receive are taxable. To determine taxability, Fellowship and Grant recipients should consult IRS Publication 970, which can be found at http://www.irs.gov.

The College does withhold taxes from Fellowship and Grant stipends paid to non-resident aliens, and according to IRS regulations, such students must receive a 1042-S form indicating the gross amount of taxable income paid to them in that year. Non-resident aliens may be exempt from U.S. taxes if their country of citizenship has a tax treaty with the U.S. To discuss this possibility see Christine Eigenbrot, or Leighona Curry or consult IRS Publication 519 ("Tax Guide for Aliens") and IRS Publication 901 ("U.S. Tax Treaties").

The Comptroller's Office will also answer questions about tax withholding from all students.