Taxes
Please note: In general, salary payments are subject to tax withholdings., but taxes are also owed on stipends.
US Citizens and permanent residents
Fellowship and traineeship stipends are not subject to withholding, but are considered taxable income and must be reported. Scholars are responsible for making quarterly estimated tax payments during the year via IRS Form 1040ES and (in California) form 540ES.
International Scholars
The Harvard International Office provides comprehensive information about taxes in the case of international scholars. Please consult their website.
In general, international scholars are subject to US federal tax laws and Massachusetts State tax laws, if you were in the U.S. at any point during the previous year. Qualifying residents of countries that have tax treaties with the U.S. may be exempt from tax withholding or receive other benefits. There are differences based on whether you receive salary or stipend payments. Qualifying scholars must file forms with the IRS prior to receiving their first salary or stipend payment--something that is handled by the HIO and the IPTC at the time of your appointment (see below). Refer to the IRS Forms page for complete information on treaty countries.
In January 2024, Harvard launched Sprintax Calculus as the tax determination software for international payees (non-U.S. individuals and entities). In addition, beginning in 2024, the HIO hosts more than a dozen webinars on how to use Sprintax, covering topics such as who must file, tax residency, State returns, etc. There is also a bult-in support within the program that can help with any issues you might encounger.
Please note that the International Payee Tax Compliance (IPTC, formerly the Non-Resident Tax Office) is not set up to provide you personal help. The Office works closely with the HIO to ensure that your tax documents are recorded correctly in Sprintax Calculus when your appointment is first processed.
General Disclaimer
Harvard, as an institution, does not advise on any personal income tax requirements or issues. Use of any information from the Tax Services site or any other web site referred to is for general information only and does not represent personal tax advice either express or implied. You are encouraged to keep professional tax advice for personal income tax questions and assistance.
Basic FAQs (courtesy of the HIO):
If you are in the U.S. in a status other than a B visa it is likely you will have to file at least one tax form. The HIO provides access to a tax preparation system that will help you satisfy this requirement if you are considered a non-resident for tax purposes (see below). The HIO has comprehensive resources on its web site that will help you to determine your tax responsibility.
Depending on the time you have spent in the U.S., you will be classified as a resident or a non-resident for tax purposes. You can determine your tax status from the HIO website. Non-residents only pay taxes on their U.S. based income while residents pay taxes on their world-wide income.
Generally international scholars on J visas are considered non-residents for the first two calendar years in the U.S. Non-residents only pay tax in the U.S. on U.S.-based income. See the IRS website for more details in this regard.
3 more resources:
- The National Postdoc Association provides an Overview of Tax Issues for Postdocs.
- Vita tax clinics, a volunteer organization that has a branch at Harvard Law School. Please note that appointments are made on a first come, first serve basis, so you need to get there early.
- The IRS itself, which provides information for
- Resident Aliens
- Non-Resident Aliens
- Dual Status Aliens
- Foreign nationals should also review Publication 519, U.S. Tax Guide for Aliens, though doing so may give you a headache.
IPTC is responsible for tax withholding and reporting of foreign individuals at Harvard, so they help to determine whether you are a resident or non-resident for tax purposes, and any tax-treaty eligibility. Please note, however, that they are not able to provide specific advice about your tax returns, which are more properly handled by Sprintax.
If you are paid a salary (NOT a stipend) your taxes will be withheld directly from your paycheck. The salary mentioned on your contract is pre-tax. Tax deductions from your salary will depend on your tax status and any tax-treaty benefits for which you might be eligible.
In the case in international payees, any tax treaties that your home country has with the U.S. will be determined when you fill out the Sprintax profile. More details about tax treaties can be found here. You must have a social security number to qualify for any tax treaty benefit. Contact the IPTC, if taxes on your paycheck don’t make sense: Make sure that your paycheck aligns with your tax status (e.g., nonresident aliens don’t pay FICA taxes). If you think a wrong amount has been withheld, get in touch with the IPTC.