Taxability of Stipends

DISCLAIMER: Tax returns are a personal responsibility. UC San Diego and its employees are not trained tax return preparers and are not authorized to offer tax return advice.

Is my fellowship considered taxable income?

Fellowships are defined as payments to aid one's pursuit of advanced training and research, and are issued for the primary benefit of the individual receiving the payment. The interpretation and implementation of the tax laws are the domain of the IRS and the courts.

California Sea Grant takes no position on what the status may be for a particular taxpayer, and does not have the authority to dispense tax advice. Individuals should consult their local IRS office about the applicability of the law to their situation and for information on their tax obligations.

Will I receive a 1099 or a W-2 at the end of my fellowship?

No. Taxes are not taken out of your fellowship award because you are not a UCSD employee. In addition, a fellowship is not a 1099 (independent contractor/consultant).

Where to Obtain Forms, Instructions And Publications

Federal (IRS): http://www.irs.gov

Federal Tax Withholding Calculator at irs.gov (enter “calculator” in Search IRS Site)

CA State: http://www.ftb.ca.gov

IRS Publication that may assist you in filing your return:
Publication 970 - Tax Benefits for Education

Please consult your tax advisor for more information.