Taxes: Assistantships & Fellowships

Fellowships and assistantships are taxable!

All payments received by graduate students, in the form of assistantships or fellowships, are considered taxable income by the federal government.

Assistantships

Assistantships are paid as earnings and are taxed at the time of payment.

Fellowships

Fellowships can be paid through several different mechanisms, and the mechanism selected determines whether taxes are withheld at the time of payment. Fellowships through the Graduate School are paid in monthly stipends in the fall and spring semesters and do not include withholding of taxes.

Arranging for Withholding

If a student decides taxes should be withheld from his or her fellowship payment, there are several methods that can be used. The most direct, if the student also has an assistantship in a department, is to complete a new W-4 form, requesting additional withholding from the monthly assistantship payment.

Changes in W-4 forms are handled directly by the Payroll Office, 16 Jesse Hall. This office can also assist if additional taxes should be withheld from the assistantship payments.

If Taxes Have Not Been Withheld

Important: If no taxes are withheld during the year, you still have a tax liability with the federal government.

At the time of filing income taxes, if taxes haven't been withheld, the fellowship is reported as unearned income. No W-2 or Form 1099 will be issued by the University identifying this amount. However, it is still the student's responsibility to report the fellowship amount. This requires completing the IRS 1040 long form.

Taxpayer Assistance for Non-native English Speakers
(See dates and locations below)

Volunteer Income Tax Assistance provides free tax assistance to low income, disabled, homebound, and English as a second language taxpayers.

Note: Taxpayers must bring the following information with them to the taxpayer assistance site:

• Social Security cards for you, your spouse and each of your children (all individuals claimed on the income tax return)
• Current year's tax forms and preparation booklet
• Copy of last year's federal and state income tax return (optional but helpful)
• Forms W-2 for every job you or your spouse worked last year
• A voided personal check or deposit slip, if you want your refund directly deposited
• Unemployment compensation statements (Form 1099G)
• SSA-1099 if you received Social Security Benefits
• All Forms 1099 showing interest and/or dividends
• Total you paid for childcare expenses and the name, address, and Tax ID/Social Security Number of the childcare provider
• Total of the student loan interest you paid
• Form 1098 for you, your spouse, and/or dependent children if you paid tuition

Location 1: University of Missouri, Arts & Science Building Room 10

Dates of Operation: 2/16/2009 - 4/10/2009

                    MON 1 PM - 6 PM; PAPER ONLY; 2/16, 3/9, 4/6/TUE 1 PM - 6 PM;
                    PAPER ONLY; 2/17, 3/10, 4/7/WED 1 PM - 6 PM; PAPER ONLY;
                    2/18, 3/11, 4/8/THU 1 PM - 6 PM; PAPER ONLY; 2/19, 3/12,
                    4/9/FRI 1 PM - 6 PM; PAPER ONLY; 2/20, 3/13, 4/10 NR ONLY

Federal Electronic Filing?: NO   State Electronic Filing?: NO  Appointment Required?: No  Languages: English

Location 2: University of Missouri, 61 Stanley Hall (Basement)

Phone: (573) 884-1690

Dates of Operation: 2/2/2009 - 4/18/2009

                    Tue, Wed, Thur 4:30-8:00 PM; Saturdays 10:00 AM - 1:30 PM

Federal Electronic Filing?: YES   State Electronic Filing?: YES   Appointment Required?: No   Languages: English