Visa Information

The Office of Fellowships sponsors J-1 exchange visitor visas for foreign scientists participating in the ARL DPF program. Refer to the Visa Options for International Associates/Fellows (PDF) document for more information.

Travel and Relocation

All travel supported through the ARL DPF program is governed by the Federal Travel Regulations, Joint Travel Regulations, and NASEM travel policy. The Travel and Professional Development Guide (PDF) provides guidance on common policies and procedures related to travel and should be reviewed before considering travel. If you have any questions regarding travel policy and procedures, please contact FOTravel@nas.edu.

Tax Liability

The National Academies of Sciences, Engineering, and Medicine are not able to provide tax advice; however, the following is general information to help you comply with U.S. Internal Revenue Service requirements. As discussed below, the forms and procedures may be different depending on whether you are a U.S. citizen or nonresident alien.

It is your responsibility to determine your individual tax liability. Please note that you may be subject to state and local taxes in addition to the federal income tax. We strongly suggest that you review your individual tax situation with a tax advisor or an IRS representative to determine the proper tax treatment for your fellowship award and any obligation for payment of quarterly estimated taxes.

Tax Status of Awards under the ARL DPF Program

Fellows are considered as guest investigators residing in host laboratories and are therefore not employees of the National Academies of Sciences, Engineering, and Medicine or the laboratories to which they are assigned. Accordingly, the National Academies characterize fellowship awards under the ARL DPF program as non-compensatory grants.

According to the IRS, fellowship stipends and benefits are generally taxable where:

• Amounts used for incidental expenses, such as room and board, travel, and optional equipment.
• Amounts received as payments for teaching, research, or other services required as a condition for receiving the scholarship or fellowship grant.

When personal services are not provided as a condition for a fellowship award, such as is the case with the ARL DPF program, the IRS generally takes the position that grant awards are not subject to social security or self-employment taxes.

Reporting and Withholding Procedures for U.S. Citizens and Permanent Residents

If you are a U.S. citizen or a permanent resident, the National Academies will send you a Statement of Stipends Paid Memorandum by mid-March. This Memorandum includes an end-of-year summary of stipend payments, contributions to health insurance made on your behalf, and all relocation and travel expenses. The National Academies will not withhold taxes or report fellowship award payments made to U.S. citizens and permanent residents for tax purposes on IRS form 1099-MISC, or form W2, as this is not required by the IRS for non-compensatory scholarship or fellowship payments.

Typically, Fellows who have no tax withheld by the National Academies should consider filing Form 1040-ES on a quarterly basis and paying estimated Federal income taxes. For more information about estimated tax payments, please consult a tax professional or the IRS website.

Reporting and Withholding Procedures for Nonresident Aliens

If you are a nonresident alien in J-1 or F-1 visa status, the National Academies are required to withhold 14% from payments made to you and on your behalf as described below, and to report that amount to the IRS at the end of the tax year. The 14% withholding rate applies to awards paid to nonresident aliens as a scholarship or a fellowship to support study, training, or research in the United States.

The amount of the fellowship award that is subject to reporting and income tax withholding will include stipends, the sponsor paid portion of health insurance, and all travel and relocation expenses paid directly by the National Academies. These amounts will be reported to the Internal Revenue Service (IRS) at the end of the tax year on IRS Form 1042-S.

You will be sent Form 1042-S by mid-March, and you should use this form to complete Form 1040-NR by June 15. If you have spent a significant amount of time in the U.S., you may be considered a resident alien for tax purposes and would be subject to an earlier tax filing date of April 15 if you pass the IRS Substantial Presence Test.

Please review the IRS website or consult a tax professional for specific regulations regarding tax requirements for nonresident aliens, including any applicable state or local taxes.