FAQs: For Students (U.S. Citizens and Resident Aliens)

1. General
2. Social Security
3. Cornell Withholding
4. Taxable Income
5. Links to Federal and State Tax Information

1. General

 Why is this Web page relevant to both resident aliens and U.S. citizens?

Resident aliens are taxed in the same manner as U.S. citizens.  

 Note: "Resident alien" is a tax term, not an immigration term, and refers to foreign nationals who either have a green card, or meet the "substantial presence test" described by the IRS . (See Publication 519.) All other foreign nationals are classified as non-resident aliens .

 What are Social Security Numbers (SSNs) and Individual Taxpayer Identification Numbers (ITINs)?

SSNs and ITINs are federal identification numbers assigned to U.S. taxpayers. U.S. citizens should have SSNs. Individuals ineligible for SSNs should obtain ITINs. For more information on these numbers, see the Payments and Tax Services web page entitled U.S. Tax Federal Identification Numbers for Foreign Nationals .  

 Will Cornell report my income to the IRS?

• All wages are reported to the individual taxpayer and to the IRS on Form W-2.
• Fellowship support used for tuition, mandatory fees, and required expenses for a course is not taxable.

 Are there any educational incentives from the IRS for students?

Yes. There are incentives that apply to students. However, these benefits generally do not apply to foreign students. 

 Note: Although brief descriptions of some of the most important incentives are provided in the table below, the rules are complicated. Be sure to review information provided by the IRS  in Publication 970 .

Incentive	Description
Hope Credit	Available to students and/or their families for the first two years of higher education.
Lifetime Learning Credit	Available to students and/or their families for higher education (including graduate school).
Deduction for Student Loan Interest	Deduction permitted, with certain limits and restrictions.

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2. Social Security

 Will I be subject to social security taxes?

This depends on your student status, as well as the type of payment.

Payment Type	Exempt from Social Security Taxes?
Wages	Yes, if the student is enrolled at least part-time and works for the educational institution.
Fellowships	Yes. Fellowship payments are not considered wages or self-employment income.  Note: Fellowship payments are generally subject to income tax.

 Are my summer wages exempt from social security taxes?

Yes. However, you must be enrolled as a full-time student to be eligible for the student FICA exemption.

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3. Withholding

 Will Cornell withhold federal and state income taxes on my payments?

There are no simple answers. The withholding requirements vary depending on the type of payment.

 Note:  It is possible for a payment to be exempt from holding requirements and still be taxable to the recipient.

Payment Type	Cornell Withholding?
Wages	Yes. Cornell withholds federal and state income taxes using graduated rates.
Tuition Fellowships for Degree Candidates	No. Tuition fellowships are exempt from taxation under the Internal Revenue Code.
Other Fellowship Support (e.g., room, board, stipends, living allowances, awards (travel, travel, prizes, emergency funds))	No. Cornell does not withhold taxes on fellowship support for U.S. citizens and resident aliens, even though this fellowship support constitutes taxable income to the recipient.
Student Loans	No. According to the IRS, loans are not taxable income. However, there are provisions in the Internal Revenue code related to below-interest loans and debt forgiveness.