Related to:
Letter Ruling

Letter Ruling Letter Ruling 80-39: Fellowship Payments to Japanese Citizen

Date: 06/11/1980
Organization: Massachusetts Department of Revenue
Referenced Sources: Massachusetts General Laws

Personal Income Tax

 

June 11, 1980

You request a ruling as to whether a Japanese doctor, **********, who is doing clinical research at a Massachusetts hospital is subject to Massachusetts income taxation on his fellowship.

The doctor is in the United States on a J-1 visa as a cardiology research fellow. He expects to remain in the United States for a total of two years, and as of July 1 his fellowship will be paid by ********** Hospital. The hospital is an affiliate of the University of Massachusetts Medical School and is exempt from income tax under Section 501(c)(3) of the Internal Revenue Code.

Article 20, Section 1 of the income tax treaty with Japan, in effect since January 1, 1973, states that a Japanese citizen who is in the United States to study or do research as recipient of a grant, allowance or award from a governmental, religious, charitable, scientific, literary or educational organization is exempt from federal income tax on the grant, allowance or award. This exemption applies for a period of no more than five years.

Massachusetts General Laws Chapter 62, Section 2 defines Massachusetts gross income as federal gross income with certain modifications. Unless specifically added by Chapter 62, an item of income which is not included in federal gross income for a taxable year is not included in Massachusetts income for tax purposes.

Based on the foregoing, it is ruled that fellowship payments made by a Massachusetts hospital to a Japanese doctor who is visiting this country for a period of two years to do clinical research are not taxable under Massachusetts General Laws Chapter 62. Such payments are also not subject to income tax withholding under Chapter 62B.
 

Very truly yours,
 

/s/L. Joyce Hampers
 

L. Joyce Hampers
Commissioner of Revenue
 

 

LJH/JKH/jmcd
 

LR 80-39

Referenced Sources:

Feedback

Did you find what you were looking for on this webpage? * required
We use your feedback to help us improve this site but we are not able to respond directly. Please do not include personal or contact information. If you need a response, please locate the contact information elsewhere on this page or in the footer.
We use your feedback to help us improve this site but we are not able to respond directly. Please do not include personal or contact information. If you need a response, please locate the contact information elsewhere on this page or in the footer.

If you need to report child abuse, any other kind of abuse, or need urgent assistance, please click here.

Tell us what you think