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The Institute is
obliged to withhold federal and Massachusetts income taxes
from the stipends of teaching and research assistants. For
tax purposes, research assistant and teaching assistant stipends
are considered as "earned income" as a result of
the services rendered. Therefore, assistants must file the
necessary federal and Massachusetts tax withholding forms
with the Payroll Office or the student's departmental graduate
office.
Fellowship stipends
are also legally taxable income. However, the tax withholding
regulations do not allow for withholding federal and Massachusetts
income taxes from the fellowship payments. Thus, students
should anticipate the tax obligation.
The tuition scholarship
portion of research assistant, teaching assistant, and fellowship
awards is not considered income to the student. Therefore,
this amount is not included on any tax document issued by
MIT at year end, and should not be reported by any student
on his/her federal or Massachusetts income tax returns.
The US government
requires all graduate students hired for research and teaching
to sign, under penalty of perjury, an Employment Eligibility
Verification (I-9 Form). You must produce specified documents,
which verify your identity and authorization to work and present
them to your departmental graduate office. Appointments are
not complete until the graduate office receives your signed
I-9 Form and has verified the appropriate documentation.
To help in the preparation of federal taxes, students may wish to consult IRS Publication 970, Tax Benefits for Education. This useful publication addresses a variety of issues related to graduate students and their tax obligations. Chapter 2 of Publication 505, which describes who must pay estimated tax, may also be helpful.
International students at MIT can benefit from CINTAX, an on-line tax preparation system for international students holding F-1 or J-1 visas. CINTAX is only of assistance in the preparation of federal (US) taxes. Please contact the International Students Office for more information. |