January 22nd, 2011

Taxing times?


POSTED BY:

Geoff Davis

A prediction: many postdocs will face higher taxes in the years to come. Why? A recent supreme court ruling on the tax status of a similar group: medical residents.

Some postdocs are not required pay social security taxes because their fellowships are not classified as compensation (it’s an issue I don’t pretend to understand well, but the NPA has a useful summary of postdoc-related tax issues here ).

Having to pay social security could make a significant difference in postdocs’ take home pay – it’s about 7% of your income. And it could mean a hit to universities, too, since employers contribute an equivalent amount.

Something to look out for.