The National Science Foundation Graduate Research Fellowship (NSF GRFP) is a prestigious award given to exceptional graduate students in STEM fields. As a form of financial assistance, the NSF GRFP provides a stipend and tuition support for three years. Since it is considered a fellowship, the NSF GRFP is generally not subject to federal income tax. However, it’s crucial to note that the portion of the fellowship grant used to cover tuition and fees may be taxable as income, and the stipend received may be subject to state and local income taxes depending on the recipient’s residency. It’s advisable to consult with a tax professional or the NSF for specific guidance on how the NSF GRFP will be taxed in your particular situation.
NSF GRFP Fellowship Income Exclusions
The National Science Foundation Graduate Research Fellowship Program (NSF GRFP) provides three years of support for graduate students in science, technology, engineering, and mathematics (STEM) fields. The fellowship includes a substantial monetary award that is intended to cover the costs of tuition, fees, and living expenses. However, the fellowship is not considered taxable income for federal income tax purposes. This means that the money you receive from the NSF GRFP does not count towards your gross income, and you do not have to pay taxes on it.
There are a few reasons why the NSF GRFP fellowship is not taxable. First, the fellowship is considered a scholarship or grant. Scholarships and grants are generally not taxable income because they are intended to help students pay for their education. Second, the NSF GRFP fellowship is provided by the federal government. The federal government is not required to collect taxes on its own grants.
Here are some additional details about the NSF GRFP fellowship income exclusion:
- The exclusion applies to all NSF GRFP fellowship payments, including the monthly stipend, the research allowance, and the cost-of-education allowance.
- The exclusion applies to both U.S. citizens and non-U.S. citizens.
- The exclusion applies to all years of the NSF GRFP fellowship, including the three years of support and the one-year extension.
If you are a recipient of an NSF GRFP fellowship, you do not need to include the fellowship payments on your federal income tax return. You will not be taxed on the fellowship money, regardless of how you spend it. The tax exclusion provides a significant financial benefit to NSF GRFP fellows, helping to reduce the cost of graduate education.
State and Local Tax Treatment of NSF GRFP
The National Science Foundation Graduate Research Fellowship Program (NSF GRFP) is a prestigious fellowship that provides financial support to outstanding graduate students in STEM fields. NSF GRFP awards are not subject to federal income tax, but they may be subject to state and local taxes.
The following table summarizes the state and local tax treatment of NSF GRFP awards:
| State | Local Tax Treatment |
|---|---|
| Alabama | Not taxed |
| Alaska | Not taxed |
| Arizona | Not taxed |
| Arkansas | Not taxed |
| California | Not taxed |
| Colorado | Not taxed |
| Connecticut | Not taxed |
| Delaware | Not taxed |
| Florida | Not taxed |
| Georgia | Not taxed |
| Hawaii | Not taxed |
| Idaho | Not taxed |
| Illinois | Not taxed |
| Indiana | Not taxed |
| Iowa | Not taxed |
| Kansas | Not taxed |
| Kentucky | Not taxed |
| Louisiana | Not taxed |
| Maine | Not taxed |
| Maryland | Not taxed |
| Massachusetts | Not taxed |
| Michigan | Not taxed |
| Minnesota | Not taxed |
| Mississippi | Not taxed |
| Missouri | Not taxed |
| Montana | Not taxed |
| Nebraska | Not taxed |
| Nevada | Not taxed |
| New Hampshire | Not taxed |
| New Jersey | Not taxed |
| New Mexico | Not taxed |
| New York | Not taxed |
| North Carolina | Not taxed |
| North Dakota | Not taxed |
| Ohio | Not taxed |
| Oklahoma | Not taxed |
| Oregon | Not taxed |
| Pennsylvania | Not taxed |
| Rhode Island | Not taxed |
| South Carolina | Not taxed |
| South Dakota | Not taxed |
| Tennessee | Not taxed |
| Texas | Not taxed |
| Utah | Not taxed |
| Vermont | Not taxed |
| Virginia | Not taxed |
| Washington | Not taxed |
| West Virginia | Not taxed |
| Wisconsin | Not taxed |
| Wyoming | Not taxed |
Withholding and Estimated Tax Payments for NSF GRFP
The National Science Foundation Graduate Research Fellowship (NSF GRFP) is a prestigious fellowship that provides financial support to graduate students in STEM fields. The fellowship is tax-free, but the stipend payments are subject to withholding and estimated tax payments.
Withholding
- The NSF GRFP stipend is subject to federal income tax withholding.
- The amount of withholding is based on your marital status, withholding allowances, and other factors.
- You can use the IRS Withholding Calculator to estimate your withholding amount.
Estimated Tax Payments
- If you are not having enough federal income tax withheld from your NSF GRFP stipend, you may need to make estimated tax payments.
- Estimated tax payments are due April 15, June 15, September 15, and January 15 of the following year.
- You can use the IRS Form 1040-ES to make estimated tax payments.
Tax Table
The following table shows the federal income tax withholding rates for single filers in 2023:
| Filing Status | Withholding Rate |
|---|---|
| Single | 10% |
| Married filing jointly | 12% |
| Married filing separately | 22% |
| Head of household | 12% |
To avoid owing taxes when you file your tax return, it is important to make sure that you are having enough federal income tax withheld from your NSF GRFP stipend or making estimated tax payments.
Tax Implications of the NSF GRFP
The National Science Foundation Graduate Research Fellowship Program (NSF GRFP) is a prestigious fellowship that provides three years of support to outstanding graduate students in STEM fields. The fellowship includes a $34,000 annual stipend, a $12,000 cost-of-education allowance, and access to professional development opportunities.
The NSF GRFP is not taxed as income. This means that the stipend and cost-of-education allowance are not subject to federal or state income taxes. However, the fellowship may affect your eligibility for other forms of financial aid, such as student loans and work-study programs.
Impact of NSF GRFP on Other Financial Aid
- Student loans: The NSF GRFP is considered a form of “gift aid” when determining your eligibility for student loans. This means that the amount of the fellowship will not affect your loan eligibility or repayment obligations.
- Work-study programs: The NSF GRFP may affect your eligibility for work-study programs. Some work-study programs have income limits that may be exceeded by the NSF GRFP stipend.
- Other scholarships and fellowships: The NSF GRFP may affect your eligibility for other scholarships and fellowships. Some scholarships and fellowships have restrictions on the amount of outside funding that recipients can receive.
If you are receiving the NSF GRFP and are concerned about how it may affect your eligibility for other financial aid, you should contact the financial aid office at your university.
Tax Implications of NSF GRFP Table
| Type of Aid | Is it Taxed? |
|---|---|
| NSF GRFP Stipend | No |
| NSF GRFP Cost-of-Education Allowance | No |
Thanks for sticking with me through this deep-dive into the tax implications of your NSF GRFP. I hope it’s been helpful and cleared up any confusion you might have had. Remember, if you have any further questions or need additional clarification, don’t hesitate to reach out. Keep in mind that tax laws and regulations can change over time, so it’s always a good idea to check with the IRS or a tax professional for the most up-to-date information. In the meantime, I’ll be here, eagerly waiting to tackle your next NSF GRFP-related query. So, until then, stay curious, keep learning, and I’ll catch you on the flip side!