Types of Postdoctoral Appointments

Upon appointment, a postdoctoral scholar is assigned to one of two distinct categories for payroll and taxation purposes:

Status Code 21: A Postdoctoral Employee is an individual who, while pursuing further training, provides services to UAB for compensation. These postdocs receive a salary, usually as part of an NIH-funded grant. Salaries and wages are fully taxable to the individual providing the services. Postdoctoral employees receive benefits as shown under the Benefits section.

Status Code 20: A Postdoctoral Trainee is an individual who is receiving a true fellowship, as defined by the IRS, and receives an amount to aid in the pursuit of research training. This amount cannot represent payment for the performance of any past, present, or future teaching, research, or other services. Postdoctoral trainees are provided health insurance with the opportunity to purchase dental options.

In accordance with IRS regulations, UAB does not withhold federal income taxes on status code 20 postdoc trainees, and the State of Alabama currently excludes fellowships from taxation in their entirety. Therefore, to the extent that a scholarship/fellowship is federally taxable to the individual, that individual will probably have to file federal quarterly estimated income tax returns and pay quarterly taxes in order to comply with individual income tax regulations. (For specific advice on an individual tax situation, a tax professional or the IRS should be contacted. Non-resident aliens should direct their tax questions to the International Scholar and Student Services (ISSS) at (205) 934-3328. Postdoctoral trainees receive benefits as shown under the Benefits section.

In accordance with regulations, federal and state income taxes are not withheld from stipend amount IF YOU ARE A CITIZEN OF THE UNITED STATES. You may be required to file federal quarterly estimated income tax returns and pay quarterly taxes to comply with individual income tax regulations.

It is important to consult an income tax professional or the IRS for advice on this matter.

The IRS booklet, Publication 970, Tax Benefits for Education, can be viewed on-line at:http://www.irs.gov. In the Search For field type: Publication 970 and in the Search Within field choose: IRS site. The booklet can be printed out or you may call (800) 829-3676 for a copy to be sent by mail. Additional publications at this site that may help you include:

Publication 421, Scholarships and Fellowship Grants 
Publication 355, Estimated Tax 
Publication 306, Penalty for Underpayment of Estimated Tax 
Publication 505, Tax Withholding and Estimated Tax

State of Alabama income tax website - http://www.alabama.gov/ 

Financial Affairs webpage on the UAB web site has a Scholarship & Fellowship section which is very helpful. See "Taxability to Individuals" at http://financialaffairs.uab.edu/content.asp?id=297413

Postdocs in UAB News

  • Deadlines for abstracts are set for early fall and are open to graduate students, postdoctoral fellows, clinical fellows and residents.Registration is open and abstracts are being accepted for the Comprehensive Cardiovascular Center symposium “Inflammation and Cardiovascular Disease,” which will be held Oct. 22-23 in the Renaissance Birmingham Ross Bridge Golf Resort and Spa. Sept. 1 is the deadline for abstracts to be considered for oral presentation and the Featheringill Young Investigator Award. Oct. 2 is the...

  • A national expert in the biomedical engineering field will chair UAB’s joint department beginning Oct. 1.Written by Kendra Carter Jianyi Zhang, M.D., Ph.D., a national leader in myocardial bioenergetics, biomaterial and stem cells for cardiac repair, has been named the chair of the University of Alabama at Birmingham’s Department of Biomedical Engineering, a joint department in the schools of Medicine and Engineering. Zhang will come to UAB from the University of Minnesota Medical School, where he is...

UAB Research News

  • A UAB researcher focusing on the epigenetics of drug abuse wins a significant funding award from the National Institutes of Health.Jeremy DayJeremy J. Day, Ph.D., assistant professor in the Department of Neurobiology at the University of Alabama at Birmingham, has been named one of six inaugural recipients of new research awards from the National Institute on Drug Abuse. The Avenir Award programs in HIV/AIDS and epigenetics are newly developed programs that reward early-stage investigators who...

  • Male and female mice use different immune cells to process chronic pain, indicating that different therapies for different genders could better target the problem.New research by University of Alabama at Birmingham researcher Robert Sorge, Ph.D., and team published today in Nature Neuroscience online challenges the common belief that males and females process pain in the same way. The majority of existing research shows that men and women have different sensitivity to pain — women are more...