NOTE: This information is not intended as a substitute for professional tax counseling or for reading relevant Internal Revenue Service and California Franchise Tax Board publications.
The Internal Revenue Service (IRS) and the California Franchise Tax Board (FTB) consider graduate fellowships/scholarships taxable income. Salary received for performing services, such as teaching and research, is not included in the “fellowship/scholarship” category.
- Tuition and fees
- Text books purchased from the campus bookstore
- Course required fees
The amount of fellowship/scholarship used to pay “nonqualified expenses” may be subject to Federal and State income tax. These include:
- Transportation & Parking
- Meals & entertainment
- Cash or cash equivalents paid directly to the recipient of fellowship/scholarship income.
- Housing, transportation, parking, meals & entertainment paid through BANNER are constructively received as cash equivalents; therefore, are subject to income tax.
U.S. citizens, U.S. permanent residents, asylees, and/or refugees do not have income tax withholding requirements on their fellowship/scholarship awards. Instead, they must make quarterly estimated tax payments to the IRS and FTB, as needed.
- GLACIER information is required and the GLACIER Tax Summary Report must be submitted with necessary immigration documents before you are paid.
- Submit documentation to UCLA or to our Tax Services office (see the GLACIER Tax Summary Report for instructions)
Tax treaty documents submitted to UCLA may reduce or eliminate tax withholding.
To order: 1-800-TAX-FORM or online at http://www.irs.gov
FOR US CITIZENS AND PERMANENT RESIDENTS:
FOR NON-RESIDENT ALIENS:
To order: 1-800-852-5711 or online at http://www.ftb.ca.gov