At the graduate level, all fellowship and assistantship stipends are considered taxable income by the Internal Revenue Service and by New York State. Generally, fellowships do not have tax taken out at the time of payment. For graduate student assistantship stipends, taxes are withheld at the time of disbursement and the stipend amount is reported to the IRS by Cornell. Students are expected to report the stipend and taxable income on their tax forms.
International students may or may not pay taxes on fellowship stipends depending on the specific provisions of the tax treaty between their home country and the United States. Students are encouraged to consult a tax expert well in advance of the tax due date, which is generally on or around April 15.