According to the Internal Revenue Service (IRS), income received from a postdoctoral appointment is considered taxable income.
U.S. citizens and permanent residents with the Postdoctoral Fellow appointment DO NOT have federal tax withheld from their stipends. Postdoctoral Fellows who do not have significant withholdings being taken from another income source must make estimated quarterly tax payments, as needed, directly to the IRS. Please obtain the IRS’ estimated tax forms in order to assess whether or not you will need to make estimated quarterly tax payments. These forms are available online from the IRS web site (look up “estimated taxes”).
Nonresidents of the United States will have federal taxes withheld from their stipend awards at a flat rate of 14%. However, if one’s home country has an applicable fellowship tax treaty, s/he should complete the tax treaty forms which, when returned to the Payroll Office, may reduce or eliminate federal tax withholding from the stipend. Scholars should refer to the tax laws of their country of citizenship, as they may owe tax in that country. Please contact the Yale Payroll Office (203 432-5408) for more information on tax treaties.
To avoid penalty charges, taxes on this income must be paid in quarterly installments using Estimated Income Tax Vouchers for Individuals - look for Form 1-ES on the IRS website’s Forms and Publications page.
- When to pay estimated tax: For estimated tax purposes, the year is divided into four payment periods; the payment due dates are April 15, June 15, September 15, and January 15.
- If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. You can pay all your estimated tax at that time, or you can pay it in four installments.
- If any of the due dates fall on a Saturday, Sunday, or legal holiday, the due date is the following business day.
- For more information, please contact the IRS web page at IRS Home.