Tax Information for Fellows
Fellowship and award recipients must pay tax on the stipends that they receive to cover living and general expenses, but may deduct certain educational expenses. Amounts awarded in payment of tuition are not taxable for fellows. Taxes are not withheld from stipends disbursed through student financial aid, so students may choose to file an estimated tax payment.
For domestic students, stipends are disbursed through the Office of Student Financial Aid.
For most international students, stipends will be disbursed through the University Human Resources payroll system. Taxes will be automatically withheld. To apply for a tax refund, students must file a federal and state tax return for the year in which the fellowship was received.
Please refer to the Internal Revenue Service Publication 970, Benefits for Education, for more information regarding the tax status of fellowship and scholarship stipends. Students may also call 1-800-829-1040 or visit www.irs.gov.
Tax Preparation Assistance
Each year, the Graduate School provides free assistance with preparing tax returns to all UMD graduate students. From late March and early April, students can come in on a first-come, first-served basis to receive assistance from an experienced accountant.
Each year, the Graduate School also purchases a tax preparation service (Glacier Tax Prep) to help students classified as nonresident aliens prepare their federal tax returns. International graduate students who have received income from the university during the tax year may use the Glacier Tax Prep service free of charge.