If you are the recipient of a summer scholarship, fellowship, prize or grant from Pomona College, we feel it is our responsibility and in your best interest to explain to you the general treatment of these amounts for tax purposes.
Generally, under the tax laws, you should not have to pay taxes on a scholarship, fellowship, prize or grant to the extent you use the funds for tuition, fees, books, and equipment required for classes or enrollment. In other words, to the extent you use the funds for these types of expenses, the scholarship, fellowship, prize or grant amount should be excluded from your income for tax purposes.
However, any portion of a scholarship, fellowship, prize or grant payment you spend on incidental expenses, including housing and food, could be included in your taxable income for the year. Therefore, you may have to pay income taxes on the portion of a scholarship, fellowship, prize or grant spent on items such as travel, research, and medical insurance.
You will receive a 1099MISC form for the current year in January of the following year if the total of all summer scholarships, fellowships, prizes or grants exceeds $599. To the extent that you determine that a portion or all the funds are not subject to tax, you should retain receipts, cancelled checks, and other documents that could show the total amount of your qualifying expenses and contact your personal tax advisor to determine how to report these non-taxable funds.
Additionally, international students whose countries do not have tax treaties with the U.S. and students without social security numbers or individual taxpayer identification numbers (ITINs) have withholding requirements on all amounts disbursed as follows:
Taxable Income Details
International Students Whose Countries Have No Tax Treaty with U.S.
- Federal withholding – 14%
- California withholding – 7% if the sum of amounts disbursed is over $1,500
Students without Social Security Numbers or Individual Taxpayer Identification Numbers (ITINs)
- Federal withholding – 24%
- California withholding – 7%
Please note that this page is intended to introduce you to the possible consequences of scholarship, fellowship, prize or grant amounts. Since individual tax liability depends on each individual circumstance, you should contact your personal tax advisor with any questions or concerns.