Nonresident Scholarships and Fellowships

Scholarships and fellowships awarded to international students who are nonresident aliens for tax purposes are taxable when used to pay for nonqualified educational expenses such as room and board and health insurance. If the student is present under a F-1 or J-1 immigration status, the taxation rate on nonqualified scholarship funds is 14%.  In some cases, the scholarship recipient may be eligible to claim a tax treaty benefit that can reduce or eliminate the tax withholding. Only scholarship recipients with a U.S. tax identification number will qualify for a tax treaty benefit.

• Scholarship Recipient Tax Residency Information Form - required to be completed by nonresident scholarship recipients
• Scholarship Recipient Tax Residency Information Form - Fill in PDF
• Nonresident Alien Scholarship Campus Withholding/Reporting Statement
• NRA Taxable Scholarship information sheet
• Campus Nonresident Alien Tax Payments in Workday
• Countries with Tax Treaty Benefits for Scholarship Recipients
• IRS form W-8BEN - to be completed when the scholarship recipient has a U.S. tax identification number and is claiming a tax treaty benefit
• 1042-S Reprints: to request reprints of IRS form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding for a scholarship recipient, contact Tax Services, tax@minnstate.edu