A fellowship provides financial support to graduate students to pursue their graduate studies without associated teaching or research responsibilities.
Fellowships are taxable. Fellowships will be reported on a 1098-T and, for non-US Citizens, also on a 1042-S. Controllers Office Tax Forms webpage.
For International Students:
Any international student is required to be taxed on the award that they receive above the cost of education (COE). They will receive a 1042-S form at the end of the year. Sometimes they are eligible to receive a refund on those taxes (so they might be get it back).There are two ways international students could avoid getting charged international taxes: 1) filing for substantial presence and 2) filing for a tax treaty (if their country has one).
If you owe MSU any money, MSU will take what you owe directly from this award prior to deposition. If you have federal financial aid, you will want to check to see how this award affects any funding that you receive.
If you have completed the Free Application for Federal Student Aid, then you should be aware that receipt of a fellowship, scholarship or assistantship may reduce your eligibility for federal student loans. Please contact the Office of Financial Aid at email@example.com if you have questions.
eGradFel is a platform that allows MSU staff and faculty to initiate and manage fellowships. GAADs, Graduate Program Directors, and Graduate Program Assistants can read the manual to learn how to receive access and begin to use this platform.