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 Employee Self Service:

  1. Go to MyUW
  2. On “My Front Page” tab, select the Employee Self Service (ESS) in the “Quick Links” on the top box on the right
  3. Hit the “Employee Self Service” hyperlink
  4. Enter your UW NetId and password
  5. Select the “Taxes” tab at the top of the Employee Self Service selections
  6. In the dark green bar at the top of the green box (Current Withholding), there is a gray radio button to “Update W-4.”  Here you can add additional withholding.

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.)