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posted May 31, 2019 5:49:13 PM

T32 fellowship FICA Question

We are newly receiving some of our income as a fellowship under an NRSA T32 grant.  I am trying to figure out if this is subject to FICA as I'm currently trying to adjust our withholdings so we don't end up owing a lot to the government at the end of the year.  Could someone provide an answer as to whether FICA is required to be paid for a postdoc fellowship under a T32 grant?

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Level 6
May 31, 2019 5:49:14 PM

While certainly not an authoritative answer, it appears that an NRSA grant/fellowship would not be considered salary or compensation for the purposes of obligation to pay FICA tax.  However, see a relevant IRS Chief Counsel ruling from 2011 for information regarding NRSA and non-NRSA fellowships at:
   https://www.irs.gov/pub/irs-wd/1117026.pdf

In particular, see the following citation therein:

"Payments made under NRSA training grants are cost-of-living stipends used to support research training and are not considered salaries; conversely, payments made under non-NRSA research grants are compensation for personal services that the NIH considers to be salaries and wages."