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Why do I owe money on my State tax return?

ℹ️ If you've reported your 1042-S form(s) from IIE on your state tax return and you owe money to the relevant state tax office, that is most likely because IIE does not withhold state income taxes from your IIE income. This means no state income tax has been paid on that income during the year, so the balance shows up when you file your return.

☝️ To fix this, you should pay the amount owed directly to your state’s tax agency by the deadline to avoid penalties as per the instructions in your state tax return's PDF file. If you're eligible, you can request a reimbursement from IIE for the state income taxes paid. Be sure to keep proof of your payment and tax return, as IIE will likely need these documents.

⚠️ IIE will not cover your underpaid State income taxes on your non-IIE income. 

📌 Here's more information on how to request a reimbursement from IIE on the state taxes:

  • Fulbright participants: If eligible, you can submit your reimbursement request through your IIE Self-Service Portal.

  • Non-IIE Fulbright participants: Please email your request directly to IIE with the subject line “State Tax Reimbursement Request.”

✔️ Be sure to include the following with your request:

  • A copy of your state tax return;

  • Proof of payment (such as a copy of the check or bank statement);

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