Tax Information

Tax ramifications of scholarships and fellowships

Scholarship and fellowship payments for U.S. citizens, Permanent Residents, and U.S. tax residents are taxable but not subject to tax withholding unless a student specifically requests taxes to be withheld via federal and state W-4 forms. Learn about how these payments must be reported in federal and state tax returns.

IMPORTANT: Your address and your state taxation

Moved to, or moving to, Illinois? State tax residency is determined initially by the address on the Personal Data form submitted at hire. If you were hired while living outside Illinois, then, you will have withholding in both Illinois and your prior state until or unless you ask to stop it.

Moving out of Illinois? If you move to another state from Illinois, withholding will not start in that state until you submit that state’s tax form, and Illinois withholding will not stop until you request it be stopped.

Failure to manage state taxation may result in being taxed by two different states and/or having to file taxes with multiple states.

How do I ask for state taxation to be started or stopped?

Though your address should be kept current in myHR, updating your address in myHR DOES NOT remove – or add - state tax withholdings on your paycheck.
In order to stop taxation in a state, you must submit this State Tax Certification form to askHR.
In order to start taxation for another state, please submit the tax form for that state.

Employee tax forms

U.S. citizens and permanent residents may submit Form W-4, both Federal and State, in order to enable the University to withhold the correct amount of tax from their paycheck.

Foreign nationals should complete their W-4s as part of the FNIS process only: please do NOT submit W-4s through the processes outlined on this page.

Northwestern cannot provide individual guidance on completion of the W-4 form or any related tax implications. If you have questions, please review IRS guidance or contact a tax consultant.

How should I complete my W-4?

Below are a few resources to assist you in completing your Federal Form W-4:

View the instructions on page 2 of the Federal Form W-4
Tax Withholding for Individuals: https://www.irs.gov/individuals/employees/tax-withholding
IRS Tax Withholding Estimator (for assistance see video instructions)
IRS 2020 W-4 FAQ webpage

What if I do not submit W-4 forms?

Federal and State W-4s are automatically created for all non-scholarship and non-fellowship appointments in myHR, whether W-4 forms are submitted or not. W-4 are also created for those who submit incorrect or incomplete forms will also default to the automatic setup.

This automated setup defaults to higher amounts of tax withholding. You may change this setup at any time by submitting a new W-4 request.
Scholarship and Fellowship recipients: Please see Scholarships and Fellowships. Taxes are not removed from these payments unless you specify an amount.

I want to update my Federal Form W-4

The Federal Form W-4 is completed in myHR Self-Service under “Pay > W-4 Tax Information.”

Update Federal W-4 in myHR Self-Service

Who cannot submit Federal Form W-4 online?

Foreign Nationals, those paid via Special Pay, and those without a currently-active HR appointment and NetID cannot submit via myHR Self-Service. Please download the Federal paper or electronic PDF, and see “Submitting Completed Forms,” below.

I want to update my State Form W-4

The State Form W-4 is not available in myHR Self-Service. Please complete a paper or electronic PDF Form W-4 to modify state tax withholding. Reference the table below to see a list of state tax forms. Employees should also check their local state government's website to confirm details about state withholding forms.

State	Form
Arizona	A-4 Arizona Withholding Certificate
California	DE-4 Withholding Certificate
Colorado	State withholding is based on Federal from W-4
Connecticut	CT-W-4 Withholding Certificate
District of Columbia	D-4 Employee Withholding Allowance Certificate
Florida	No withholding form; Florida does not have state income tax withholding
Georgia	G-4 Withholding Certificate
Illinois	IL-W-4 Withholding Certificate
Indiana	Form WH-4
Kentucky	K-4 Withholding Certificate and Employee's Statement of Non-residence in Illinois
Maryland	MW 507 Withholding Certificate
Massachusetts	M-4 Massachusetts Employee’s withholding exemption certificate
Michigan	MI- W-4 Withholding Certificate and Employee's Statement of Non-residence in Illinois
New York	IT-2104 Employee’s Withholding Allowance Certificate
North Carolina	NC-4 Withholding Certificate
Oregon	State withholding is based on Federal from W-4
Pennsylvania	State withholding is based on Federal from W-4
South Carolina	South Carolina Employee's Withholding allowance certificate
Tennessee	No withholding form; Tennessee does not have state income tax withholding
Texas	No withholding form; Texas does not have state income tax withholding
Wisconsin	WT-4 Employee’s Wisconsin Withholding Exemption Certificate/New Hire Reporting and Employee's Statement of Non-residence in Illinois

Note: Most states tax its residents on all their income, no matter where it is earned. This can result in state taxes to be withheld for more than one state, in case the state of work location (i.e. state where services are performed) is different than that of Resident state.

Submitting completed forms

Your paper or electronic/PDF forms should be submitted in person at askHR, through campus mail, or via email to askHR@northwestern.edu. If submitting via email, for your protection we recommend that you place a password on the file that you then send us separately. Forms received by the 15^th of each month will take effect that month.

If you are submitting paper or electronic forms, please ensure your form is complete and accurate before submission. Inaccurate or incomplete forms will be securely destroyed without being processed. Below you will find common reasons why a Form W-4 may be rejected.

Why might my form be rejected?

Rejected forms must be redone and resubmitted by the employee, as inaccurate or incomplete forms will be destroyed without being processed.

Paper and electronic forms will be rejected for the following reasons:

If you are an active employee or student, your paper/electronic form will not be processed. Instead, complete your Federal W-4 online at myHR > Pay.
- Online Special Pay recipients may submit Federal W-4 for processing.
If you are a foreign national, you will complete your W-4 as part of the FNIS process.
Possible errors on W-4 form required fields:
- SSN: Social Security Number is required (at least the last four digits).
- Signatures: Forms must include a handwritten signature, signed electronically or with a pen. Typed signatures, including those in cursive font, are not accepted.
- Dates: Forms must include dates; dates may be handwritten or typed.
- Federal W-4 requires Sections 1 (a, b, c) and 5 (signature and date) be completed.
"Exempt" status must be claimed correctly (see detailed "Exempt" instructions on state forms, and on page two of the Federal W-4).
Editing is not allowed. Forms must not contain any crossed-out or edited text.
Handwritten forms must be clearly legible.
Please see the table above regarding state forms. Northwestern is unable to withhold taxes for all states at this time, and therefore cannot accept forms from all states.