Stipends, scholarships, fellowships, and grants are meant to support personal research or studies.
Such income is often grouped together, for tax purposes, as "non-service scholarship/ fellowship" income. This may include also health insurance paid on behalf of non-employees and "reimbursements" for travel or other expenses that have not been deemed University business expenses.
- If a scholarship recipient is a degree candidate at Harvard University, and all or part of the award has been set aside for qualified tuition and course related fees, the scholarship is not reportable.
- Scholarships and fellowships issued to resident aliens (including funds that exceed tuition and related expenses) do not require tax withholding when payments is issued. These payments may still be reportable to the U.S. tax authorities as "gross income" to when filing tax returns, and might also subject to taxation. In these cases, no tax reporting document (W-2, 1042-S, nor 1099) will be issued by Harvard. The individual should use information from personal pay records to report this income.
- Nonresident aliens on an F, J, M, or Q visa are subject to a 14% tax withholding rate on non-service fellowship/ scholarship income, in the absence of a claimed tax treaty. Those on other visa types will incur a 30% withholding rate. These tax withholding requirements are only applied to non-qualifed fellowships/ scholarships, such as non-employee health insurance, housing, childcare, travel reimbursements related to personal research. Additionally, this income will be reported on a 1042-S.