Policy updated March 2021
Students in receipt of Awards, Prizes, Scholarships, Fellowships and/or Emergency Aid Resources should note that funds may be subject to Federal Tax Withholding, ref. Forms, Publications and Other Tax Links. Except as noted below, HCDE practice does not allow for the increase in the amount of a distribution to offset a student’s Federal Tax liability.
HCDE cannot provide tax advice, instead please refer to the following websites, which may provide additional guidance and information.
- Tax Office > Students sub-heading
- SFS Departmental Scholarships and Fellowships
- For questions related to student taxes (1098-T), please contact Student Fiscal Services at 206-221-2609 or email@example.com
- For questions related to foreign vendor payments, foreign tax withholding, honoraria payments to a foreign national and tax treaties, please visit the Global Operations webpage or contact 206-685-0271 or email firstname.lastname@example.org.
- Nonresident Alien Students Federal Tax Information
- SFS Tax Computations for Scholarships
- The U.S. tax code requires federal income tax withholding on all U.S. source non-qualified scholarship payments to nonresident alien students. The withholding rate for payments to students on F-1 or J-1 visas is 14%. Non-qualified scholarships are those payments for expenses other than tuition and course-related expenses. The Department may, if appropriate and with approval from the Chair, make an offset to a taxable award, scholarship, fellowship and/or emergency aid payment, in the designated amount (percentage) to a nonresident alien student.
- SFS Frequently Asked Questions