UROP funding will be noted on a student’s form 1098–T and should be reported to the IRS as taxable or non-taxable income, depending on each student’s unique situation.
Funding received from UROP may be taxable and should be reported to the Internal Revenue Service (IRS). The tax treatment of UROP funding depends on the student’s individual circumstances, including how the funds are used and whether the funded activity overlaps with a course requirement. In general:
- Non-stipend funding originally intended for and spent toward a UROP student award that is also required by a course (for example, when you are receiving academic credit for it) may not be taxable.
- Non-stipend funding spent toward a UROP student award that is not required by a course may be taxable.
- Stipend funding received to work on a UROP student award is generally taxable, regardless of whether the activity overlaps with a course.
These examples are intended only as general guidance and may not apply to your specific situation. In addition, changes to the amount or type of funding you receive from UROP after the initial award, including adjustments made at the completion of your ERC, Project, or Presentation, may affect your potential tax liability.
UROP cannot provide tax advice. Students are encouraged to consult a qualified tax professional for guidance specific to their situation.
For International Students Only
All of the information above also applies to international students.
International students should note that before a UROP award is disbursed to them by the university as a refund, the money will be held by the Cashier’s Office until International Student Services (ISS) reviews the scholarship for tax purposes. ISS will contact the student and request any additional paperwork needed before UROP funding can be received or released.
In some cases, the IRS may withhold a portion of UROP funding based on the student’s tax status or full financial aid package.
For questions related to international student tax matters, please contact International Student Services (ISS): issmanoa@hawaii.edu.