International students who come to the United States from countries that do not have a tax treaty with the US are subject to certain tax rules and regulations that differ from those applicable to students from treaty countries. In general, non-treaty students are subject to higher tax rates and may be required to pay taxes on a wider range of income sources.

In certain cases, a student will have taxable income for a calendar year when the amount of financial aid/scholarships received exceeds the amount of tuition, books and fees charged. The student will be responsible for the tax that is calculated on this excess and it will be added to their account. This tax is required unless exempt under a treaty between the U.S. and the student’s home country.  For countries that do not have a treaty with the US, a taxpayer identification number (TIN) or a social security number (SSN) should be provided to the university to qualify for the 14% tax rate, otherwise a tax rate of 30% will be used. (Current rates per the Internal Revenue Service (IRS).  

Reporting and taxation of student payments are governed by the Internal Revenue Code and Treasury Regulations and enforced by the Internal Revenue Service (IRS).

It is important for international students to understand the tax laws and regulations in the country where they are studying and to be aware of any tax obligations they may have. International students should consult with the Office of Financial Aid or the appropriate recruiter to ensure that they are in compliance with all tax laws and regulations.

Instructions for Form 1042-S