HOME / PAYMENTS / TAX WITHHOLDING ON PAYMENTS /

Honorarium, Royalty, Prize, or Other Payment

The following are subject to a 30% tax withholding rate in the absence of tax treaty benefits:

  • Honoraria, or payments made at the discretion of the University as compensation for professional services, including guest lectures. If honoraria and other performance-related payments from the University exceed $5000 per year, in the aggregate, the marginal earnings would also be subject to Massachusetts State tax of around 5.5%.
  • Independent contractor/consultant payments issued when Harvard is charged for the service.
  • Royalty payments (always 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).

 

 

 

 

 

 

 

See also: Foreign-source income, Independent Contractor Payment, Prizes/Awards, Royalty, Fellowship, Honorarium, Administrators, Individual

Disclaimer

The information contained within this website is provided for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.  All information in this site is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance and fitness for a particular purpose.