Duke University has separate IRS reporting obligations for U.S. citizens, resident aliens (green card holders), U.S. residents for tax purposes, and foreign nationals.
U.S. Citizens and Permanent Residents
Duke University's reporting obligations for U.S. citizens, permanent residents (green card holders), and U.S. residents for tax purposes on the non-compensatory payment system vary based upon the following factors:
Internship payments (wage type 4003) and Postdoctoral payments (wage types 4002, 4012) must be reported by Duke University. The recipient will receive IRS Form 1099 for these payments. The recipients may elect to have tax withholdings by completing IRS Forms W-4 and NC-4.
Scholarship payments (wage type 4000) and Fellowship payments (wage type 4001) do not require reporting by Duke University to the IRS based upon federal reporting requirements, unless taxes are withheld; however, this is reportable income for the individuals. Corporate Payroll Services provides courtesy letters to the recipients that include total payments issued during the calendar year. Please note, if the recipient elects to submit withholding forms (IRS Form W-4 and/or NC-4), they will receive IRS Form 1099 for these payments.
Please note: Although scholarships (4000) and fellowships (4001) are typically not reportable to the IRS by the paying agent, they do represent reportable income for the individual, who may have a responsibility for including these payments when filing personal income taxes.
All foreign nationals who are nonresidents for tax purposes and receive non-compensatory payments will receive an IRS Form 1042s reflecting all payments issued during the calendar year.
Distribution of Tax Documents
IRS Form 1099 and courtesy letters are distributed in conjunction with the January payments of each calendar year.
IRS Form 1042S forms are issued to all non-compensatory payment recipients who are not U.S. citizens, permanent residents (green card holders), or residents for tax purposes. IRS regulations require that they be issued by March 15 of each calendar year.