2024 Graduate Student Tax Information – Domestic


The Tax Information for Domestic Students session covers basic tax filing preparation for the 2023 tax year for students who are considered residents for tax purposes (i.e., US citizens/permanent residents). Topics include reviewing taxable and non-taxable income, understanding common deductions, reporting stipend income, filing returns via IRS Free File options, and where to go for additional assistance.

• If you would like to request a PDF copy of the presentation, please email gradhelp@uchicago.edu.

2024 Graduate Student Tax Information – International

The Tax Information for International Students recording covers basic tax filing preparation for the 2023 tax year for international students who are considered nonresidents and residents for tax purposes. Topics include determining tax residency status, reviewing income sources, explanation of tax forms, filing returns via free filing options for both residents and nonresidents, and where to go for additional assistance.

• If you would like to request a PDF copy of the presentation, please email gradhelp@uchicago.edu.

2024 Graduate Student Tax Information – Postdocs, Fellows & Scholars

The Tax Information Session for Post-Doctoral Students recording covers basic tax filing preparation for the 2023 tax year for postdoctoral fellows or scholars at UChicago. Topics include determining tax residency status, reviewing income as a ‘fellow’ or ‘scholar’, understanding filing requirements, making prior year filings and corrections, and where to go for additional assistance.

• If you would like to request a PDF copy of the presentation, please email gradhelp@uchicago.edu.

If you have already filed your federal tax return, you can use the same information to complete your Illinois state tax return.

Illinois’ state tax filing form is the IL-1040, which you can file online at mytax.illinois.gov. You can also fill out a paper form and mail it to Illinois Department of Revenue (IDOR). The mailing addresses will be listed at the end of this presentation. Please note that if this is your first-time filing taxes in Illinois you must complete a physical IL-1040 form and mail it to IDOR. No one completing Illinois taxes for the first time can submit and pay online. Once you’ve filed your first return, you will receive an Illinois ID number/PIN, which you can use to file and pay online in subsequent years.

Before beginning your state return, you’ll want to have your completed federal return to use for reference (form 1040). If you were a non-resident for tax purposes in 2023, you will also need a completed Schedule NR form. The following categories are used for residency in Illinois:

• Full-year resident: maintained a legal place of residence in Illinois from January 1 through December 31. You do not have to be physically present in Illinois the entire year to be considered a full-year resident. File state taxes using IL-1040.
• Part-year resident: established Illinois resident during the year or were an Illinois resident but established residency in another state during the year. File state taxes using IL-1040 and Schedule NR.
• Nonresident: you are a full-year resident of a state other than Illinois. File state taxes using IL-1040 and Schedule NR.

Please keep in mind you can be considered a nonresident for tax purposes by the federal government / IRS and still be a resident of the state of Illinois.

• If you would like to request a PDF copy of the presentation, please email gradhelp@uchicago.edu.

UChicagoGRAD is not permitted to give individual tax advice to graduate students, but you can view the recorded Quarterly Estimated Tax session and send any follow-up questions to us at gradhelp@uchicago.edu.

If you are a US citizen / permanent resident or a resident for tax purposes, federal taxes are not withheld by the University from fellowship stipend income. You will need to use form 1040-ES and IL-1040-ES to calculate federal and state estimated tax obligations.

Estimated quarterly taxes may be made for any income that is taxable but not subject to tax withholding. For example, students do not need to pay estimate taxes on any wage income because federal and state taxes are already withheld from these payments by the University. However, the University does not withhold federal taxes from some fellowship stipends and cannot withhold any state taxes, even though this is taxable and reportable income. The individual taxpayer is ultimately responsible for making appropriate calculations and determining an estimated tax obligation.

If you are a non-resident for tax purposes (for example, you’re an F-1 student who arrived in the US in Autumn 2022), federal taxes are likely already being withheld from your fellowship stipend. In that case, you would only need to calculate a potential state tax obligation using IL-1040-ES.

When should quarterly estimated taxes be paid?  

Once you have calculated your estimated tax obligation, you should adhere to the following deadlines. These dates are set but the IRS but are followed by the Illinois Department of Revenue (and by other revenue agencies in different states). If you only arrived in the US in autumn 2023 when you matriculated into your program, you would only calculate your estimated tax obligation based on US-sourced income earned between September 1 and December 31, 2023.

If you are unsure of your tax residency status or what is or is not being withheld from your fellowship stipend income, please email gradhelp@uchicago.edu.

UChicagoGRAD is not permitted to give individual tax advice to graduate students, but you can view the recorded Tax Treaty Information session and send any follow-up questions to us at gradhelp@uchicago.edu.

A tax treaty is a bilateral agreement between the US and another country to help residents of both countries avoid double-taxation on income received while a resident of one country is present in the other. Individuals may be eligible for exemption from US tax withholding or may be taxed at a reduced rate at the federal and state level. Exemptions and reduced rates vary depending on the individual’s country of residence, and not every country has a tax treaty that applies to fellowship stipend income. Treaty agreements outline information sharing between two countries to help with tax compliance. 

The most common kind of treaty claim at the university is made on fellowship stipend income. The following countries have a treaty agreement with the US for fellowship stipends:  

*  5-year treaty limit;  ⊥ 3-year treaty limit;  ◊ No specific time limit;

± Residents of Cyprus who are not candidates for a degree are not eligible

A US taxpayer identification number is required to claim a tax treaty. Whether you are eligible for a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) will be determined by what type of income you are receiving. An on-campus position (including teaching/research assistantships) is required to apply for an SSN. If you do not have an on-campus position, you will apply for an ITIN. Information on SSN/ITIN eligibility and the application process can be found on the Office of International Affairs website: Social Security Numbers & ITINs.  

Tax treaties are not automatic – you need to proactively claim a tax treaty for it to be recognized by Payroll. To make a treaty claim, you will need to provide the following to Payroll / Financial Services:  

Effective January 2024, Payroll has removed the requirement to submit original (physical) tax treaty forms to Payroll Services. Tax treaty claims should be made using the electronic tax treaty forms generated by Sprintax Calculus. Once you have generated your tax treaty documents in Sprintax, all documents must be uploaded to your Workday profile under “Worker Documents”.  Then, email the University’s foreign tax analyst Cristina Cruz (cristinadc@uchicago.edu) to notify them that the tax treaty forms have been uploaded. Your documents will then be reviewed, and tax treaty benefits will then be applied to the next payment.

Please note when signing tax treaty forms – text box signatures, drawn signatures on a device, or e-signatures without a place/timestamp are not acceptable e-signatures.

REQUIRED DOCUMENTS
To make a treaty claim on fellowship stipend income: Forms W-8BEN or W-9 + W-9A
To make a treaty claim on wage-income from the university: Forms W-8BEN, 8233, and the corresponding Revenue Procedure Statement

Frequently Asked Questions 

I have an applicable tax treaty. Do I still need to pay taxes in my country of residence? 

Tax treaties generally exempt individuals from double-taxation only. This means that if you claim an exemption in the US, you likely must pay tax on your US-sourced income in your country of residency. Some individuals choose to refrain from making a treaty claim in the US if the effective tax rate in their country of residence is higher than it is in the US. You can speak to a tax advisor to see if this may be the case for you. Pay very careful attention to the specific provisions of your tax treaties. Some treaties have “retroactive clauses” that state that you lose your entire exemption retroactively if you stay in the US beyond a certain length of time. 

 What if I have an applicable tax treaty but taxes have already been withheld from my income?  

• Within the same calendar year (example: it is 2023 and you want taxes withheld from your spring 2023 stipend returned) a refund can be issued directly by the university. If you have not seen a refund of previously withheld taxes come directly through Workday to you, please contact gradhelp@uchicago.edu. Please note that an approved treaty (including a US taxpayer ID) must be in place.   
• In a different calendar year (example: it is 2023 and you want taxes withheld from 2022 stipends returned) a refund must be requested directly from the IRS and the Illinois Department of Revenue when filing tax returns. 

 I’m now a resident for tax purposes – can I claim a tax treaty when I file my federal return?  

Returns for residents / residents for tax purposes do not specifically address claiming tax treaties as residents for tax. However, our interpretation is that individuals should follow this process: 

• Prepare IRS 1040; Line 1: enter ALL wage income, line 10: enter amount in parenthesis from schedule 1 line 26, line 7: subtract the amount from line 10 from line 1 
• Complete form 8833 (Treaty-Based Return Position Disclosure) to include details of treaty.