A fellowship is a financial award that helps graduate students to pursue their graduate studies without associated teaching or research responsibilities. There are a huge number of fellowships available to graduate and professional students.
A fellowship is a financial award that helps graduate students to pursue their graduate studies without associated teaching or research responsibilities. There are a huge number of fellowships available to graduate and professional students.
Fellowships can be considered taxable income. Domestic students are not taxed by MSU, however we are required to tax international students on any award that is above and beyond the cost of their education. Fellowships will be reported on a 1098-T and, for non-US Citizens, also on a 1042-S.
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 should check to see how this award may affect your funding.
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.
For any questions, contact the Office of Financial Aid.
International students are 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.
They may be eligible receive a refund on those taxes. There are two ways international students could avoid getting charged international taxes: