Taxes

Salaries paid to postdoctoral scholars and non-NRSA postdoctoral fellows are considered wages and are subject to federal income and FICA tax withholding. Conversely, stipends for NRSA postdoctoral fellows are classified as non-compensatory and are not subject to federal income or FICA tax withholding. Penn State does not withhold federal taxes or FICA on NRSA fellows’ stipends.

All postdoc salaries, regardless of their source, are taxable for Pennsylvania personal income tax and are subject to withholding. Additionally, these stipends are taxable under the Pennsylvania State Unemployment tax.

For more details on the reporting responsibilities of NRSA fellows, refer to IRS Publication 970: Tax Benefits for Education. Special rules apply to nonresident aliens; for more information on their tax treatment, please consult IRS Publication 519: U.S. Tax Guide for Aliens.

For local IRS Office information, click here.

If you have any questions regarding your personal tax situation, please consult a tax professional.