Tax Information for International Athletes:
Important Information About your Athletic Scholarship
The U.S. government requires that all colleges and universities withhold tax at the rate of 14% on non-qualified1 scholarships awarded to nonresident2 alien students.
1. Non-qualified scholarships include awards applied to room and board and any other expenses which do not include tuition, books, and required fees.
2. A nonresident alien student is generally someone who has been in the U.S. in F-1 or J-1 student status for less than 5 years. Before any tax is withheld from your scholarship, an official determination of your tax status will be made. If you are a resident alien for tax purposes, tax will not be withheld from your scholarship; however, you are still responsible for reporting your scholarship and paying any applicable taxes when you file a U.S. tax return at the end of each tax year.
Frequently Asked Questions:
Will this have any impact on my student account?
Yes! This tax withholding will reduce the amount of the total scholarship applied to your student account, and you will be responsible for paying any remaining charges. For example, if the room and board portion of your scholarship is $10,000, the 14% withholding will reduce what is applied to your student account by $1,400.
Can I get any of the 14% withholding back?
Depending on the total amount of your taxable scholarship and income, you may be entitled to a refund of some or all of the tax withheld from your scholarship. This determination is made at the end of each tax year when you file a tax return. More information about how and when to file a tax return can be found on our FAQ page.
What about the tuition portion of my scholarship?
Any portion of your scholarship designated for tuition, books, and fees is not taxable.
What about the tax treaty between the U.S. and my home country?
Nonresident alien students from certain countries may be eligible for an exemption from tax withholding based on U.S. tax treaties. If this office determines that you are eligible for a tax exemption, your scholarship will be adjusted accordingly; however, you are still responsible for filing a tax return at the end of the year to claim the tax treaty benefit.
All nonresident aliens with taxable scholarships must complete the following forms:
Application for a U.S. Individual Tax ID Number (ITIN) Form W-7.
Substantial Presence Test