TAXABLE PAYMENTS
PRIZES AND AWARDS (TAXABLE): Monetary payments for achievement,
performance or a competition unrelated to employment are considered taxable income
to the student. They are not taxable if the recipient chooses to have the prize or award
paid directly to a designated charitable organization. The voucher is coded as 313 for
undergraduate students, 218 for graduate students.
Undergraduate Prizes and Awards: The candidates for the following prizes are
nominated by the department based on academic excellence, and the prize winners are
selected by the Undergraduate Faculty Committee consisting of the Faculty Chair,
Program Director, and nine other faculty members convened for that purpose. These
awards are given out annually at the WWS Class Day ceremony.
SPECIAL PROCEDURES FOR STUDENTS TRAVELING ON INTERNSHIP or FOR
CONDUCTING THESIS RESEARCH
As stated above, payments of all related costs for students going on their summer
internship or conducting research, including thesis research, are taxable. Included are:
• the cost of travel (e.g., airfare, train fare) associated with arriving at the
destination/returning to School;
• the stipend provided for room/board (for unpaid internships);
• the cost of procuring a visa; and
• the cost of immunizations/medications.
Expenses related to traveling for non-course related activities are taxable to the student
and reportable as income. Ideally, the students will make the purchases of travel,
lodging, etc. on their own, and then submit the expenses on a student voucher
coded 313 for undergraduate students, 218 for graduate students.
For graduate students, costs for internships are estimated in advance, and funds
provided to the students before internship, and then reconciled after; for undergraduate
students, a lump sum is provided based on the duration of the internship, and no
reconciliation is required upon return.
Special note for non-resident aliens (NRA): taxes will be withheld from the payments
made to them at the rate of 30%. However, if the student is present in the US on an F,
J, M, or Q visa, then 14% withholding will apply. If a student has a US social security
number and his/her country of residence has a tax treaty with the U.S., then he or she
may be able to claim a partial or full exemption from the income tax withholding by filing
Form 8233. In any event, for any NRA submitting a request for funding for summer
internships, the treasurer's office may need up to 45 days to process the payment and
to ensure that withholding is appropriate, based on the home country.
Coding the vouchers for the advance and expense reports: For each student taking a
WWS-paid internship, the office responsible [either the Undergraduate Program Office
(UPO) or the Office of Graduate Career Services (OGCS)] prepares a budget outlining
the expected expenses for the travel (this may include the anticipated cost of airfare,
stipend amount, visas, inoculations and medicines, as noted below). This budget is to
be attached to a student voucher with information on the student, and any other relevant
information re: the purpose of the trip. The voucher is coded as 313 for undergraduate
students, 218 for graduate students. It is then signed, sent to the Grants Manager in
the WWS Finance Office who signs the voucher and sends it on to the Treasurer's
Office. The Treasurer's Office has been notified to prepare CHECKS for these
students, that the Treasurer’s Office will return to the Grants Manager, who will hand-
deliver them to the UPO or OGCS to, in turn, provide them to the students. This is done
so that the students will have the cash well in advance of the trip. NOTE: FOR
STUDENTS WHO ARE NRAs, IT MAY TAKE UP TO 45 DAYS TO GET THE
ADVANCE, SO THIS PAPERWORK SHOULD BE STARTED AS EARLY AS
POSSIBLE.
Upon receipt of the check the student receives an automatically generated e-mail from
the Treasurer's Office alerting them to the fact that these funds provided are taxable and
that the students must retain records related to their receipt and expenditure of the
funds to support their tax return position. For non-resident aliens, part of the advance
will be withheld by the University (more on this below under "REPORTING AND
WITHHOLDING").
At the end of the summer, in order to satisfactorily complete their summer internship
degree requirement in an unpaid internship, graduate students MUST turn in to the
OGCS a WWS Unpaid Summer 2008 Internship Expense Sheet itemizing what they
have actually spent for airfare, visas, inoculations, and prescriptions (and in the case of
those interning under the Duke-HEI Geneva program for rent) – together with all
receipts -- no later than October 1 (more information on this can be found below – LINK
to section on graduate internships).
Undergraduate students, by contrast, do not have to reconcile funds upon return.
PROCEDURES FOR UNDERGRADUATE STUDENTS CONDUCTING THESIS
RESEARCH
The WWS Undergraduate Program has three funding rounds for thesis research (Fall,
Winter and Summer).
Students in any department, working on a senior thesis topic in public or
international affairs may apply to the Woodrow Wilson School for funding to support
their thesis research during the winter break and over the summer of their junior year.
Students who received research grants for the summer or fall break may apply again.
Funding is available for travel expenses, and for on-site living expenses ($450/week)
associated with this research. Restrictions: Funds for senior thesis research are
normally not available for travel to countries for which the U.S. State Department
has issued travel warnings. For a current list of countries for which travel
warnings have been issued please consult the U. S. State Department web site at
http://travel.state.gov/travel/cis_pa_tw/tw/tw_1764.html
Grants will not be made for photocopying, book or equipment purchases, car rentals,
payments to interview subjects, language study, course work, group research projects,
research done in Princeton, or research done elsewhere as an assistant on a faculty
research project. Travel expenses will not be provided for travel to or from a student’s
home or to conferences.
The granting of awards will depend on the academic merit of the project and the
availability of funds. All applications will be read and reviewed by a faculty committee.
The committee will consider: the merits of the topic and the research plan; the feasibility
of the proposed research and travel plans; the qualifications of the student to do the
work; the necessity of travel to secure the required information; and other relevant
issues. The committee will also review the proposed budget; grants can not always be
provided for the full amount requested.
Students must complete an application – available from the Undergraduate Program
Office -- and return one original and nine copies of the application and all supporting
materials to the Woodrow Wilson School Undergraduate Program Office (114
Robertson) by the deadline specified by the Office, along with the faculty adviser's letter
of recommendation (to be returned under separate cover to the Woodrow Wilson
School Undergraduate Program Office).
Materials required for Senior Thesis Research Funding application:
1. An itemized budget of expected expenses including the total amount of funds
requested. List travel expenses separately. Itemize budget as follows:
Transportation to and from research site
Local on site transportation costs
Living expenses based on $450. a week for room and board
No other expenses are eligible for funding consideration.
2. Project Statement Attach a project statement of not more than two, double-spaced
pages. The application must state the policy question that the research is
intended to answer. This statement should describe your proposed research, the
research methods employed, and the work accomplished to date. You should
indicate the relevance of your research to issues and problems in public and
international affairs, include a precise description of how the funds will be used, and
include a brief bibliography.
3. Planned Itinerary Indicate where you are going, what you plan to do and whom you
will see at the research site. If your research requires access to specific documents,
archives, or agencies, indicate whether you have contacted the appropriate person
at the research location.
4. Qualifications Include languages, quantitative skills, course work or other training or
skills that have prepared you for this research.
5. Faculty Recommendation Ask the Princeton University faculty member who is your
thesis adviser to forward to the Woodrow Wilson School Program Office a detailed
evaluation of your proposed research topic. Your faculty adviser will need to read your
research proposal prior to writing the letter of recommendation. Note that the faculty
adviser's letter is due the same day as the completed application. The faculty member
may submit the recommendation in the form of a letter addressed to the Senior Thesis
Research Funding Committee, 114 Robertson Hall.
PROCEDURES FOR UNDERGRADUATE STUDENTS TAKING SUMMER
INTERNSHIPS
Application process for undergraduate internships
Grants are available for undergraduate WWS students who will be undertaking
substantive internships in governmental or non-profit organizations doing work
in public and international affairs in the U.S or abroad. Substantive internships are
those that involve students in current issues in public policy; they do not include
internships that are primarily focused, on clerical work, fund-raising, or direct service
delivery to patients or clients. Funding also will not be awarded for work on political
campaigns, or as an assistant on a faculty research project. Funding is normally not
available for internships in countries for which the U.S. State Department has issued
travel warnings; (for a current list of countries for which travel warnings have been
issued please consult the U.S. State Department web site at
http://travel.state.gov/travel/cis_pa_tw/tw/tw_1764.html. Successful applications for
funding have been submitted, for example, for substantive work at the U.S. House of
Representatives, the U.S. Department of State, Department of Justice, Amnesty
International, Human Rights First, US Committee for Refugees and Immigrants,
Brookings Institute, and the US AID, Asia and Near Eastern Bureau.
Internships must be unpaid, full-time, and last a minimum of six weeks.
Internship funding is limited. All internships are funded equally, with the amount of the
grant determined by the number of awards. The internship grants are usually between
$3,200 and $4,100. Students who are applying for funding from another Princeton
University affiliated program, must indicate the name of the program and advice the
WWS undergraduate program office if awarded other funding.
Students must complete an application and submit a one-page description of the
internship, in their own words. The description should describe the agency for which
the student will work, define expected duties, and demonstrate the relationship of the
internship to public or international affairs. Before receiving funding, students will have
to produce a letter of commitment from the sponsoring agency that specifies the nature
of the work and the duration of the internship; it should also indicate that the work is
unpaid.
Applications can be obtained from the WWS Undergraduate Program Office.
PROCEDURES FOR GRADUATE STUDENTS TAKING SUMMER INTERNSHIPS
The WWS Office of Graduate Career Services (OGCS) has developed a set of
procedures for internships. These are as follows:
As a reminder, although all monies that WWS provides for unpaid summer internships
are fellowships, the Internal Revenue Service considers them taxable
income. Income taxes will be withheld from payments made to nonresident aliens as
described in “nonqualified scholarships and fellowships.”
For students taking an unpaid summer internship, once the WWS Committee for
Summer Internship Assignments has approved the internship, the student will be told
the level of stipend support WWS will provide based on the UN cost-of-living index for
the country in which s/he will be working -- up to a maximum of $450/week.
For students taking a job in the US, the level will be $450/week, regardless of location.
Students must work a minimum of 10 weeks; WWS support will be provided up to a
maximum of 12 weeks.
An invoice will be processed for travelers in early spring for the total estimated for WWS
support in an unpaid internship. It will include: the stipend; round-trip airfare from
Newark/NY to the place of work; required inoculations and prescribed medication
expenses (more on this, below); and the cost of the visa. The lump sum will be given by
check as soon as the internship has been approved. The student is required to get a
quote from Astor Travel and book their own airfare with them, another travel agent, or
on-line, following the procedures outlined below, once the internship has been
approved. Payment for the airfare, inoculations/medications, and visa will be paid
directly by the student using the money provided; all receipts must be saved. Receipts
are NOT required for the weekly stipend; the only requirement is that the student must
work the amount of time approved, up to a minimum of ten weeks, and must return the
stipend for any weeks not worked (or, alternatively, will get reimbursed for any extra
weeks worked for which a stipend was not provided as part of the advance).
At the end of the summer, in order to satisfactorily complete the summer internship
degree requirement in an unpaid internship, student MUST turn in to OGCS
the WWS Unpaid Summer Internship Expense Sheet available from the WWS
Career Services Office itemizing what was actually spent for airfare, inoculations, and
prescriptions together with all receipts -- NO LATER THAN OCTOBER 1.
Depending on the amount spent on travel, inoculations, visas, and medications, and the
number of weeks on internship, the WWS may owe funds, or the student may owe the
WWS.
International Travel: Procedures for booking international travel: In order to receive
School support for unpaid summer internships overseas, students, must get a quote
from Astor Travel for the least expensive flights on the dates of travel. As Astor Travel
charges WWS a fee for this quote, students are allowed to get only one quote from
them so should be sure to have the exact dates of travel confirmed before contacting
Astor Travel. Astor Travel's contact information is:
Astor Travel, a Tzell Travel Affiliate, 119 W. 40th Street, New York, NY
The people to contact there are either: Marie Mazzei or Donna Laurino.
E-mail addresses: mariem@tzell.com and donnal@tzell.com
Telephone: (212) 302-4692 -- or toll free during business hours in the
continental U.S. (877) 536-8432 x 155 (Marie); x195 (Donna).
The School CANNOT pay Astor Travel or any other travel agent directly for student
airfare; students must pay for their own flights out of the lump sum money provided in
advance.
For students wishing to make other stops in other locations than the place of
employment, or who wish to depart or return to locations other than Newark/NY, this is
possible -- but the WWS will only reimburse for the amount of the quote for the direct
flights from Newark/NY that Astor Travel provided ( unless, of course, the actual flights
cost less than this quote).
Students should ask the travel agent about an application for a Student I.D. Card. This
card entitles students to less expensive rail transportation fares and accommodations in
some parts of the world.
Students should make sure to provide their employers with departure and arrival
times for overseas assignments. This is particularly important for those working at
U.S. Embassies and Missions, since a member of the post staff is usually assigned to
meet student employees at the airport.
Domestic Travel (U.S.- Based Internships) The School will pay for the least
expensive way of getting from Princeton to the work destination for students on an an
unpaid internship in the U.S. For those working in New York City, Philadelphia, New
Jersey, or Washington, DC, this will be rail fare. For those working in other cities in the
U.S., this may mean airfare. If airfare, students must follow the same procedure as
those flying international in terms of contacting Astor Travel to get a quote for the airfare
cost.
Health information (Overseas Internships) The WWS will cover the cost of the
inoculations and other medications needed in order for students to perform
overseas summer internships. In order for this to happen, students must meet with
Helen Ackley, Nurse Practitioner & Coordinator of the Travel & Immunization Service, at
McCosh Health Center at Princeton University (hackley@princeton.edu). Helen will
provide to the student a list of required shots and the cost of each. Upon receiving the
inoculations, students must pay for same by cash, check, or credit card and obtain a
receipt for submitting upon return from the internship. Helen will also provide a
prescription for any medications necessary to take for the travel to the country of the
internship. Again, students must save the receipts after obtaining the medications. It
may be possible that these shots and/or medications are paid for by the student's
Princeton Health Insurance program; students are requested to investigate this and
obtain coverage from the University insurance program before paying for these out of
the advance provided.
EXPENSE REPORTING FOR OTHER STUDENT EXPENSES
PAYMENTS TO NON-ENROLLED STUDENTS
At the WWS, payments to non-enrolled students generally fall into two categories:
students whom we have recruited for admission into the graduate program and wish to
host (payments are non-taxable); and students who are a part of the Junior Summer
institute (payments are taxable). There are different procedures for these two types of
students.
MINORITY HOSTING WEEKEND
Funding provided to students who are coming to Princeton but who are not
enrolled here yet whom we are recruiting to matriculate – e.g., during the minority
hosting weekend – is NOT subject to taxation and withholding. Recruiting
students is a business expense of the University and, therefore, is not a
scholarship or fellowship subject to taxation and withholding. The students
reimbursed for such expenses should submit a Business Expense Report, with
original receipts attached; all transportation should be charged to account code
275.
JUNIOR SUMMER INSTITUTE (JSI)
Funding provided to students who are coming to Princeton as a part of the Junior
Summer Institute (JSI) is subject to taxation and withholding. For these students,
the office inviting them (i.e., in the case of JSI, the GPO) must manage the
preparation of the funding to the students, obtaining the 8233s for submission to
the payroll office, and preparing letters to the students explaining that they are
being provided funds that are taxable income.
JSI procedures: In the case of JSI, the payments to students are usually made in
several parts: a stipend, which is the same amount given to each student to
cover housing and food costs while they are at Princeton; a travel allowance to
cover travel to/from the program; and misc. payments made BY the school on
behalf of the student to conference services or others for food, misc.
travel/entertainment costs, use of the gym, etc.
The stipend is $1,850 for the six weeks of the program. The vouchers are
prepared by the GPO, and submitted to the WWS Financial Management Office
for processing prior to being sent to the Treasurer’s office, who then prepare the
checks AND the letter to the students outlining the taxability of the payments.
In addition, the GPO generally pays a lump sum of funds on behalf of the
students to University Conference Services to cover all food and other related
expenses for the students while they are on campus. The GPO also provides a
$500 travel allowance per student (to/from program); most of these costs are
paid directly to Deluxe Travel who arranges for the travel for the students but, in
some cases, they are reimbursed directly to the student. The GPO also arranges
for the students to attend various entertainment functions, which the GPO pays
for directly.
At the end of the JSI program, the GPO will estimate all of the expenses that it
has paid on behalf of all students – including travel, University conference
services, entertainment, etc. – divide it by the number of students, and calculate
a total taxable expense per student. NOTE: This amount does NOT include the
stipend amount.
The GPO will then prepare a letter to each student at the end of the program,
explaining the estimated amount that the program paid on their behalf, and that it
is taxable to them
REPORTING AND WITHHOLDING
The procedures for reporting and withholding related to payments to students depends
on whether the students are US Citizens/resident aliens, or non-resident aliens. The
different procedures are outlined below.
U.S. Citizens and Resident Aliens: The IRS considers “non-qualified” fellowships and
scholarships to be taxable income, reportable by the recipient, on his/her personal tax
return. It is the responsibility of the recipient (and NOT the University), to report
taxable non-qualified fellowship or scholarship payments to IRS. In other words, the
University neither reports on nor withholds income on non-qualified, taxable income
provided to them. The University will provide notification upon issuance of a check to
the student, alerting them to the fact that the funding provided to them could be taxable,
, and that it is their responsibility to maintain records related to the payment and
properly report taxable payments on their tax return. Sample:
You recently received a payment that is taxable as a nonqualified scholarship and
should be reported as income. Specific information can be found in the PDF attachment
to this email. Please keep a copy of the attached letter for your tax records. If a reply is
necessary, it should be made to me at mailto:invoices@princeton.edu. [Johnny Jones
should review this]
Non-Resident Aliens (NRAs): Non-resident aliens (NRAs) are subject to income tax
withholding from nonqualified scholarship or fellowship amounts paid to them. The
University will report the withholding of these taxes and the amount of the payment to
the IRS and to the student on Form 1042-S. The University is required to withhold tax
at the rate of 30% unless the student provides documentation of their visa/tax
treaty status (F, J, M, or Q visa) -- which could reduce the withholding rate to 14% or
the student has a social security number and can claim a partial or full exemption under
a tax treaty on Form 8233. IRS Publication 901 spells out in more detail information
about tax treaties and includes an updated list of countries with tax treaties. It can be
found at http://www.irs.gov/pub/irs-pdf/p901.pdf. Information for students themselves
about the US Tax Guide and implications for them can be found in IRS Publication 519,
US Tax Guide for Aliens, which can be found at http://www.irs.gov/pub/irs-
pdf/p519.pdf.
To claim a tax treaty benefit, nonresident alien students must file Form 8233 with
the Princeton University Treasurer’s Office at least 30 days prior to when they expect to
receive their payment. The form can be downloaded from this site --
http://www.irs.gov/pub/irs-pdf/i8233.pdf and instructions can be found
at http://www.irs.gov/pub/irs-pdf/i8233.pdf.
For students who cannot claim a tax treaty benefit the student voucher should indicate
that the student holds an F, J, M or Q visa or their payments will be subject to 30%
withholding tax.