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If I have a fellowship from a foreign grantor but it is paid to me monthly by my U.S.-based institution, is it taxable?

  • If your institution is merely distributing the grant to you on the instruction of the foreign grantor, they are acting as the agent for the foreign grantor. The grant remains a foreign-source grant under those circumstances.
  • If you are a nonresident alien, the foreign-source grant is not subject to tax even if it is administered by your institution. If you are a resident alien, you are subject to tax on worldwide income, which includes the foreign-source grant, unless a tax treaty exception applies.