- As the recipient of a 2021 GPATS stipend/fellowship payment, in January 2022, you will be receiving a letter in the mail explaining the general tax treatment of these payments for income tax purposes. Since you are not providing services to YU, you will not be issued a Form W-2 or Form 1099, however, as described below and in the letter, the stipend/fellowship payments may still be subject to income taxation. If you do not received the letter by the middle of February, please contact Alan Kluger, YU Director of Tax, at akluger@yu.edu, it is possible that we did not have your current address on file.
- The following is a summary of the relevant tax rules. Generally, a student is not subject to income taxes on a fellowship stipend or grant payment to the extent that the funds are used to pay for tuition, fees, books, and equipment required for classes or enrollment. Therefore, to the extent you use the funds for these types of qualifying tuition related expenses, the fellowship, stipend or grant amount should be excluded from your income for tax purposes. However, any portion that you spend on other expenses, such as room and board, travel, research or medical insurance, may be included in your taxable income for the year and subject you to taxes. Special rules apply if you are not a US Citizen or resident.
- Please consult your personal tax advisor regarding the determination of whether your GPATS related payment is taxable based upon your individual facts and circumstances. To the extent that you determine that such payments are not subject to tax, you should retain receipts, cancelled checks, and other documents that show the total amount of your qualifying expenses. You also may find IRS Publication 970, Tax Benefits for Education, helpful with regard to the tax treatment of the scholarship, fellowship, grants and other benefits.