Important Tax Information
Understanding My Tax Liability
Wisconsin Space Grant Consortium recommends the following;
Award recipients assume the responsibility for any and all income tax liabilities. WSGC recommends that you document all expenditures, and maintain a record of all original receipts. Please contact your tax accountant.
Reference: Students and Taxability
Scholarship/Fellowship
Category: *Qualified
Name of Payment: Scholarship/Fellowship
Criteria: Student pursuing degree and used for *Qualified expenses
Status: Non-Taxable
Key: Considered a resource when determining financial aid
Payee & Mail Check to: Institution - Financial Aid Office on behalf of student
Tax Reporting: Student institution for year-end report to IRS and student via 1098T
Scholarship/Fellowship
Category: **Non-Qualified
Name of Payment: Prize/Award
Criteria: Recognition of achievement or received as result of contest entry
Status: Taxable
Key: Selected based on actions to enter contest, competition or proceeding
Payee & Mail Check to: Individual
Tax Reporting: Carthage College will report to IRS & individual; Income is self-reported
Scholarship/Fellowship
Category: **Non-Qualified
Name of Payment: Stipend
Criteria: Used for **Non-qualifying expenses
Status: Taxable
Key: No instance involves services related to work
Payee & Mail Check to: Individual
Tax Reporting: No withholding/No reporting rule: U.S. citizens no tax withholding; no reporting required if not “work”
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*Qualified: Tuition and fees required to enroll/attend for degree-seeking students; course related expenses such as fees, books, supplies, and equipment required for courses - must be required of all students.
**Non-qualified: Room and board, travel, research, clerical help, equipment and other expenses that are not required for enrollment/attendance for all students; tuition and fees for non-degree seeking students.
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Summer Stipend
Criteria: Not enrolled; not taking courses
Status: Taxable
Key: No instance involves services related to work. Student should maintain own records for taxes
Payee & Mail Check to: Individual
Tax Reporting: No withholding/No reporting rule: U.S. citizens no tax withholding; no reporting required if not “work”
Reimbursement
Criteria: Approved expenditures: need receipts
Status: Non-Taxable
Key: Incur costs for approved activities; includes invoices from other institutions
Payee & Mail Check to: Party to be reimbursed
Tax Reporting: No reporting
Please note that all NASA awardees must be U.S. citizens.