Receiving Payments

If you receive any kind of payment those payments might be considered taxable income to the Internal Revenue Service (IRS). If you are a non-resident alien for tax purposes, find more information on how payments are treated under the Foreign Nationals section.

Taxable income is often taxed before you receive it, i.e., you will receive a check net of taxes. At the end of the calendar year you have to then submit a tax return to the federal government and the state in which you reside to true up your income and taxes paid.  If you were taxed exactly right, you will submit your tax return and nothing further will happen.  On some occasions, people end up owing money to the IRS and the State they reside in or they receive a refund from the IRS and / or the State they reside in.

On the following pages, we discuss different kinds of payments made to you and what the tax implications are.

Just as a quick primer for the three situations most common:
1) if you work, you will get taxed on federal and state taxes as well as social security and medicare taxes
2) if you receive financial aid that is greater than the cost of tuition, you will get taxed on federal taxes and state taxes
3) if you receive an honorarium, you will get taxed on federal and state taxes

There is no way to get out of taxation every U.S. citizen, green card holder and resident alien for tax purposes is taxed on their worldwide income and a required by law to report all income.

In early February of each year, tax forms are sent out for the previous year by the companies / organizations who paid you money.  It is your responsibility to do your tax return with the help of those tax forms by April 15 of that year.

The Human Resources/Payroll and Accounts Payable offices are required by law to collect certain tax forms such as I-9, Form W-4 and Form W-9. It is very important that you give us the information and forms in a timely manner when we contact you.

Last Updated: April 22, 2009