Although stipends are not considered salaries, this income is still subject to Federal and, sometimes, State income tax. Such income may be reported by the sponsoring organization on IRS Form 1099, Statement of Miscellaneous Income.

Normally, the business office of the sponsoring organization will be responsible for annually preparing and issuing IRS Form 1099 for fellows paid through the organization (fellows at domestic non-Federal organizations).

Sponsoring organizations are not required to issue a Form 1099, but it is a useful form of documentation of income received and a reminder to the fellow that some tax liability may exist.

Fellows are reminded that, even if the sponsoring organization does not issue a Form 1099, they still are required to report stipends as income. The OPDIV will issue a Form 1099 for each fellow training at a Federal or foreign laboratory and receiving a stipend check from the U.S. Treasury.