Honorarium, Royalty, Prize, or Other Payment

The following are generally subject to a 30% tax withholding rate paid to nonresident aliens, in the absence of tax treaty benefits:

An Honoraria is defined as a gratuitous payment of money, or any other thing of value, to a person for the person’s participation in a usual academic activity for which no fee is legally required. They are payments made at the discretion of the University as compensation for professional services, including guest lectures. If an honoraria is a performance-related payment from the University, and exceeds $5000 per year in the aggregate, the marginal earnings would also be subject to Massachusetts State tax of around 5.5%.

Various IRS and USCIS regulations should be taken into account when guest speakers and other "performers" receive compensation for services or payments to cover travel expenses. Harvard University administrators must adhere to a broad array of tax and immigration regulations, including restrictions on payments to certain visa holders, tax withholding obligations, and service requirements regarding both honoraria and reimbursements.

  • Honoraria and Reimbursements for Foreign Nationals
  • Independent contractor/consultant payments issued when Harvard is charged for the service.
  • Royalty payments (generally considered U.S-source).
  • Prizes or Awards, issued in recognition of a past accomplishment (not to be confused with a fellowship or grant for current or future research).

A resident alien for tax purposes is subject to the same tax withholding and reporting requirements as a U.S. citizen or Permanent Resident, including taxation of worldwide income.

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