Taxes & Withholdings

Description

Postdoctoral trainee stipends, salaries, and other payments may be subject to federal, state, and local tax rules. Tax treatment may vary based on appointment type, funding source, tax residency status, and individual circumstances.

OPA cannot provide personal tax advice. Postdoctoral trainees should consult Penn tax resources, IRS guidance, Sprintax, or a qualified tax professional for questions about their personal tax situation.

Understanding Tax Withholding

Tax withholding is the amount deducted from a payment and sent to a tax authority on the recipient’s behalf. Withholding does not necessarily determine the final amount of tax owed or refunded. Final tax liability is determined when the individual files their annual tax return.

Postdoctoral trainees should review their pay slips and tax forms carefully and keep their address, payment, and tax information current in Workday@Penn.

Tax Treatment by Appointment Type

Stipends or salaries paid to Postdoctoral Researchers and non-NRSA Postdoctoral Fellows are compensatory in nature and are considered wages for federal income and FICA tax withholding purposes.

Stipends paid to NRSA Postdoctoral Fellows are considered non-compensatory and are not considered wages for federal income or FICA tax withholding purposes. Penn does not withhold federal income tax or FICA from NRSA Postdoctoral Fellow stipends.

Although no federal reporting or withholding is required for National Research Service Award (NRSA) postdoctoral appointments, NRSA Postdoctoral Fellows must report and pay federal income tax on any payments in excess of tuition, fees, books, and certain other expenses. For additional information, NRSA Postdoctoral Fellows should consult IRS Publication 970: Tax Benefits for Education.

State and Local Taxes

All postdoctoral trainee stipends are taxable for Pennsylvania personal income tax and subject to withholding. Stipends are also taxable for Pennsylvania State Unemployment Compensation tax.

In addition, all postdoctoral trainee stipends are subject to the City of Philadelphia wage tax and withholding.

Postdoctoral trainees who live or work outside Pennsylvania or Philadelphia may have additional state or local tax considerations and should consult applicable tax guidance or a qualified tax professional.

Tax Forms

Postdoctoral trainees may receive different tax forms depending on payment type, appointment type, and tax residency status. These may include forms such as a W-2, 1099, or 1042-S, depending on the nature of the payment and the individual’s tax status.

Postdoctoral trainees should review Workday and other relevant systems for available tax forms. Questions about Form W-2 or Form 1042-S should be directed to the Penn Employee Solution Center.

International Postdoctoral Trainees

Special rules apply for international postdoctoral trainees. For tax purposes, immigration status and tax residency status are not always the same. An international postdoctoral trainee may be treated as a resident alien or nonresident alien for tax purposes depending on IRS rules, including the substantial presence test.

Tax residency status may affect withholding, treaty benefits, tax forms, filing obligations, and whether the postdoctoral trainee is subject to FICA taxes.

International postdoctoral trainees should review International Student and Scholar Services (ISSS) tax guidance and applicable IRS resources. ISSS provides access to Sprintax, a tax preparation software designed for nonresident students and scholars. Nonresident taxpayers should not use tax software intended for U.S. residents unless they have confirmed that it can prepare the correct nonresident tax forms.

For more information on tax treatment for nonresident aliens, consult IRS Publication 519: U.S. Tax Guide for Aliens.

Tax Scams and Fraud Prevention

Postdoctoral trainees should be alert for tax scams, especially during tax season. Do not provide personal information, banking information, Social Security Numbers, Individual Taxpayer Identification Numbers, or payment through suspicious links, calls, texts, or emails.

The IRS generally does not demand immediate payment by phone, email, text, gift card, prepaid debit card, or wire transfer. Postdoctoral trainees who receive a suspicious tax-related message should verify it through official IRS or Penn channels before responding. For local IRS Office information, click here.

Penn Policy and Related Guidance

For general tax rates, withholding forms, Philadelphia city wage tax information, and related payroll tax resources, postdoctoral trainees should review Penn Finance’s Individual Tax Rates and Forms page.

International postdoctoral trainees should also review ISSS Tax Information and ITIN guidance for information specific to international students and scholars.

For questions about Penn tax forms, payroll records, or Workday tax information, postdoctoral trainees should contact their department or school business administrator or the Penn Employee Solution Center.