Smithsonian Fellowship stipends are not considered salary or compensation, but are awarded to help support a fellow’s study and research efforts during the tenure of their appointment. Portions of stipends may be allotted specifically for health insurance, research, and travel.
Fellowship income of U.S. citizens and resident aliens is not considered to be income derived from a trade or business and is not, therefore, subject to self-employment (social security) tax (refer to Spiegelman, 102 TC No. 14).
Fellows awarded stipends receive a financial statement as a reminder of what was received as a personal reference. Each fellow is responsible for meeting their own state and federal tax obligations. These will go out late February or early March.