International Taxable Scholarships
Nonresident alien students who receive scholarships may have taxable income under IRS regulations. Scholarships that exceed qualified expenses are subject to 14% income tax withholding. Qualified expenses include only tuition and required fees such as lab fees, activity fees, etc. NON-qualified expenses include room and board, books, health insurance, etc. This indicates, then, that students who receive full scholarships that pay for room and board and other miscellaneous fees will have taxable scholarship income.
Taxable amounts will be determined each semester, and appropriate amounts will be charged to student accounts for those students who have a tax obligation. This process will be completed after the third week of class when enrollment status has been confirmed.
International students who have taxable scholarships will receive Form 1042S from the College for each tax (calendar) year. This form will include the total scholarship amounts, taxable amounts, tax home country information, etc. This form is required to be mailed to the student no later than March 15th and will be delivered to campus mailboxes.
Students are encouraged to seek the advice and assistance of a tax preparation professional with questions regarding nonresident alien tax matters. The college cannot provide professional tax advice. For additional information concerning taxable scholarships, click here.