Taxable scholarship and grants.

International Students
1

<p>I am wondering if international students eligible for full comprehensive aid ( grants or scholarship) are supposed to pay tax for the amount of aid that exceeds tuition, fees, and supplies. I have heard lot of rumors about it. The following information has been extracted from Occidental college FA office website. </p>

<p><a href="http://organizations.oxy.edu/finaid/handbook/05.grants.html%5B/url%5D"&gt;http://organizations.oxy.edu/finaid/handbook/05.grants.html&lt;/a>
"If your Financial Aid Award contains scholarships and grants, part of those amounts may be taxable. Current tax regulations consider scholarships and grants totaling more than the tuition, fees, and books and supplies expenses as taxable income. Only the amount of scholarships and grants exceeding the above charges is considered taxable. Further information regarding taxable scholarship and grant monies is available in tax filing instructions or from the IRS (<a href="http://www.irs.ustreas.gov%5B/url%5D"&gt;www.irs.ustreas.gov&lt;/a&gt;). If you have questions concerning the amount of your scholarship which might be taxable, you should consult your tax advisor or an IRS"</p>

<p>Does it apply to international students too?? ....those who are studying with full comprehensive aid,, please tell us what you have been doing?</p>

2

<p>I have no idea, but thought this might bump up the thread for you. Perhaps you should contact the Finaid Office directly?</p>

3

<p>I am not sure how it works for internationals but for U.S. citizens, anything above tuition, fees, books - in other words, what is directly applicable to education - certainly is taxable income. That includes room and board, any travel funds, etc.</p>

<p>I agree with yy0712 - best to email and ask directly how internationals are treated.</p>

4

<p>OK, I did a little research. International students do have to file tax returns if they receive scholarships. They will be taxed on amounts above and beyond tuition, books, etc. - this means room and board, travel expenditures, etc. are tax deductible.</p>

<p>However, certain countries have tax treaties with the U.S. that may exempt all or a certain portion of this amount from U.S. taxes. International students still do have to file some tax forms every year with the U.S.</p>

<p>Here is a list of the countries with tax treaties:
<a href="http://www.utexas.edu/international/taxes/treaty3.html%5B/url%5D"&gt;http://www.utexas.edu/international/taxes/treaty3.html&lt;/a&gt;&lt;/p>