8.10.3 Payments to Non-Matriculated Students
Policy Statement
Payments to non-matriculated students for services rendered to the University of Illinois System are reported as compensation. Payments to non-matriculated students who are not expected to perform services for the system are reported as taxable miscellaneous income.
Since non-matriculated students are not enrolled in a degree program, the system has no IRS Form 1098-T and no U.S. Department of Education (ED) Title IV financial aid reporting requirements.
Reason for the Policy
The IRS and ED impose strict guidelines by payment type on how payments to students must be reported. For additional information, see Payments to Students.
Applicability of the Policy
Non-matriculated students receiving payment from the system.
Procedure
Payments for services rendered to non-matriculated students are processed by University Payroll and Benefits (UPB) and reported on Form W-2.
Payments to non-matriculated students who are not expected to perform services for the system are either Participant Support Cost payments, or they are processed via Chrome River and reported on Form 1099-MISC, Miscellaneous Income, by University Payables (UPAY).
For additional information, see Payments to Students.
Last Updated: March 10, 2023 | Approved: Senior Associate Vice President for Business and Finance | Effective: March 11, 2019