How will tax and FICA witholdings impact summer funding payments?
• U.S. Citizens and Resident Aliens: Internship funding awards are taxable income to students and the College is required to deduct federal, state, and local income taxes from internship payments. During the summer when students are not enrolled in classes, the College must also withhold Social Security/Medicare (FICA) taxes from internship payments. Note that take-home earnings will be around 15-16% below the funding award. Fellowships are also taxable unless used to directly pay tuition and fees, books, and supplies and equipment required of all students in an academic program. The College does not withhold taxes from fellowship payments. At the end of the calendar year, the total amount of fellowship payments issued during the year is listed on a letter sent to students. • Non-Resident Aliens: Internship funding awards are taxable income and the College is required to deduct applicable taxes from the internship payments. At the end of the calendar year internship payments to non-res
