What is FIU’s responsibility for withholding Federal Income Taxes on scholarships or fellowships?
FIU is responsible to withhold Federal Income taxes at the rate of 14 % on amounts received from U.S. sources by a foreign national present in the U.S. on an “F”, “J”, “M”, or “Q” visa that are part of the scholarship but not for tuition and fees. Room, board, or incidental expenses received under the scholarship are subject to withholding. Tuition, fees, books, supplies, and equipment required for courses of instruction are not subject to Federal income tax. Payments to nonresident aliens whether taxable or treaty exempt are reportable to the IRS on Forms 1042 and 1042-S. Q-003: Are some students non-taxable even though their financial aid exceeds their tuition and fees? (Back to Top) A: Yes, the U.S. has tax treaties with many countries which exempt these students from U.S. income tax. However, the students must file IRS Form W-8BEN with FIU. You should contact the Controller’s Office if you have any questions about U.S. tax treaties. Q-004: Why does FIU require foreign national stud
