You will receive a stipend as support for your living and other expenses during this educational experience. Stipend rates are determined by DOE, and are based on your educational level, skills, and experience.
Stipends are paid according to the schedule provided to you at time of appointment. You should be prepared to cover all expenses for the first 30 days of your internship.
ORAU strongly encourages you to sign up for Electronic Funds Transfer (EFT), i.e., direct deposit, for stipend payments. Stipend payments may only be electronically deposited to one acount and not to separate accounts.
EFT requires you to have a U.S. bank account; ORAU cannot transfer funds to foreign institutions.
If you are eligible and choose to enroll in the ORAU health insurance plan, you can expect to have the monthly premium deducted from your stipend payment each month. This pays for health insurance for the following month (e.g., the premium for January coverage will be deducted in December). If you begin your appointment between the 1st and 15th of a month, you can expect to have two insurance premiums deducted from your first stipend payment (one to cover the current month and one to cover the following month).
Because the educational benefits of the appointment are the primary focus of the program, you may not provide services for compensation to a third party that conflict with your appointment. Awards, prizes, scholarships, Veterans Administration benefits, and other payments may be accepted provided they do not represent dual payment for the same activity.
For information on tax liabilities and how to file federal tax forms, please contact a licensed tax professional in your jurisdiction. We recommend that you provide your tax preparer with a copy of the most recent Terms of Appointment.
All stipend payments paid by ORAU directly to you are considered taxable by the U.S. federal government, and it is your responsibility to report these payments to the Internal Revenue Service (IRS).
Because you are not an employee, your stipend payments are not considered wages and should not be reported as such. Stipend payments are payments made in order to help defray living expenses while you are engaged in the program. For IRS purposes, these payments are considered non-qualified scholarships and fellowships (not tuition and fees). For information on how to report this amount on your federal tax return, refer to IRS Publication 970, Tax Benefits for Education, which can be downloaded from www.irs.gov/formspubs or requested at 1-800-829-3676.
You will not have federal taxes withheld by ORAU from your stipend payments and can expect to receive an annual Statement of Payments letter from ORAU. Designed to help with tax preparation, this statement will be sent by February and will include the total amount of payments made by ORAU to you during the previous calendar year.
Because stipend payments are awards (not wages), ORAU does not withhold Social Security or Medicare taxes for you. You are not self-employed, and therefore do not pay self-employment taxes. ORAU also does not withhold state income tax.