<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">http://www.utexas.edu/international/taxes/treaty3.html</a></p>