Is a PiLA fellowship taxable?

Yes. A fellowship is an amount paid to or for the benefit of an individual to aid in the pursuit of study, research, or service work such as that entailed through a PiLA placement. Per the IRS, scholarship and fellowship amounts are taxable (“nonqualified”) when amounts are used for room, board, travel, equipment, incidental living expenses, stipends, and other expenses not required as part of their education; or funds are given to non-degree candidates, such as postdocs and fellows.

PiLA is not required to withhold taxes or report your earnings to the IRS, but you are responsible for reporting your stipend as fellowship income on your annual federal tax return (see the IRS web site). Upon request, we are happy to provide a letter documenting the fellowship amount.

We recommend that you keep detailed financial records in order to prepare your personal annual tax return. Note that this is not tax advice. We suggest that you consult your tax adviser with further questions and to discuss making estimated tax payments for the taxable portion of your fellowship income.