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Taxation of Fellowship Payments to Non U.S. Citizens

Last Updated: June 25, 2025 12:11:21 PM PDT
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Learn about withholding/collection and reporting of tax on fellowship payments to Non U.S. Citizens.

A fellowship grant is generally an amount paid or allowed to an individual for the purpose of study or research according to the Internal Revenue Service (IRS), which is the U.S. federal tax authority. Residency status for federal tax purposes determines how fellowship payments to foreign visitors are taxed and reported. Some countries have tax treaties with the U.S. that exempt their citizens from federal tax on fellowship income. IRS Form 1042-S “Foreign Person's U.S. Source Income Subject to Withholding" reports certain types of payments and federal tax withholding.

Fellowship income is generally taxable in the state of California. Individuals may need to make quarterly tax payments to the California Franchise Tax Board (FTB) (state tax authority). For more information, please visit the FTB website.

Email the UCSD Glacier & TaxationTeam for more information.