Taxes

Social security and federal withholding tax will not be deducted from your training grant stipend.

If you receive additional compensation above the level of the training grant stipend, some tax may be withheld from that portion of your pay.  You might need an additional amount withheld from your paycheck so that you won’t owe taxes in April. The amount you may need to withhold depends upon your tax situation.

If you’d like to understand the tax implications of your specific situation, you may wish to use the tax withholding calculator at the following IRS web site:

http://www.irs.gov/Individuals/IRS-Withholding-Calculator

If you need to change your W-4 to withhold additional tax, you can do so online through Workday:

  1. Go to the ISC website and click on “Sign in to Workday”
  2. On the homepage, select the Payroll icon
  3. Click on “Withholding Elections”
  4. Click on the “Update” button at the bottom of the screen
  5. On the first screen you will be asked to confirm your company (which you should leave as is) and the date you want your withholding changes to be effective.
  6. On the next screen you can edit your W-4 information, including adding an additional amount to be withheld from your paycheck.

Other resources you may find useful:

UW Student Fiscal Services holds tax workshops that cover topics such as grants and fellowships and education-related tax credits and deductions.

The IRS publication on Tax Benefits for Education.  Chapter 1 deals with reporting and paying taxes on Scholarships, Fellowships and Grants.  You may also be interested in the education credit in Chapter 3, and the tuition and fees deduction in Chapter 6.

The NIH FAQ under Stipend/Salary regarding the taxability of stipends, and the NIH Grants Policy Statement section on the taxability of stipends in section 11.3.10.6.  (The gist of both of these is that the NIH does not take a position on tax questions and that you should consult the IRS.)