Does ORAU withhold federal and state income taxes for Fellows who are foreign nationals?
ORAU will review existing treaties between the Fellow’s country of citizenship and the U.S. to determine federal income tax withholdings. ORAU may withhold a portion of the monthly stipend for income tax purposes based on the current treaties. ORAU does not withhold state income taxes. Travel expense reimbursements (including relocation costs) are not taxable. Fellows should consult a tax accountant or other tax professional regarding state and federal income tax requirements. NPP Fellows receive award payments from ORAU, which are reported to the Internal Revenue Service (IRS) by ORAU as “Miscellaneous Income—prizes and awards” as defined in IRS Code Section 74.
ORAU will review existing treaties between the Fellow’s country of citizenship and the U.S. to determine federal income tax withholdings. ORAU may withhold a portion of the monthly stipend for income tax purposes based on the current treaties. ORAU does not withhold state income taxes. Travel expense reimbursements (including relocation costs) are not taxable. Fellows should consult a tax accountant or other tax professional regarding state and federal income tax requirements. NPP Fellows receive award payments from ORAU, which are reported to the Internal Revenue Service (IRS) by ORAU as “Miscellaneous Income—prizes and awards” as defined in IRS Code Section 74. All payments by ORAU should be reported on the Fellow’s federal income tax return, Form 1040, as “Other Income” and be identified as a “Fellowship Award.
