Tax Information for International Students Receiving Scholarships, Fellowships, or Non-Service Stipends

This information generally applies to Tulane students and scholars who are not U.S. citizens or lawful permanent residents and who receive certain types of funding from the University, including.

• Scholarships or Fellowships
• Non-Service Stipends (NSRs)
• Housing Scholarships
• Meal Plan Scholarships
• Health Insurance Scholarships
• Stipends for travel 

The tax treatment of your funding depends on both the type of payment and how the funds are used. A scholarship or fellowship is often not entirely tax-free or entirely taxable. Instead, it can include both taxable and non-taxable portions. In general, the qualified portion of your funding is not taxable, while the nonqualified portion may be taxable under U.S. law. Because most funding packages include a mix of these expenses, it is common for only part of your scholarship or stipend to be taxed, rather than the full amount.

Amounts generally not taxable (Qualified Expenses)

Amounts applied to qualified educational expenses are generally not taxable. These expenses may include:

• tuition
• required enrollment fees
• required books, supplies, and equipment

Amounts that may be taxable (Nonqualified Expenses)

Amounts used for non-qualified expenses may be taxable. These expenses may include:

• housing
• meals
• travel
• living expenses
• NSR Stipends
• health insurance waivers
• any portion of a scholarship or fellowship that exceeds tuition and required fees

Tulane may be required to withhold tax before the payment is issued. You may not receive the full amount listed in an award or offer letter. Instead, you will receive a net amount of your award after taxes are deducted. 

In most cases, the standard federal tax withholding rate on taxable scholarship or fellowship income is 14%, unless a tax treaty benefit applies that allows for a reduced rate or exemption.

The exact amount withheld may depend on several factors, including your immigration status, your tax residency status, the type of payment you receive, whether you are eligible for a tax treaty benefit, and whether you have completed all required tax documentation.

Tulane will withhold money now so that when you file taxes, you do not owe a large sum of money to the IRS. 

Your tax residency status is not the same as your immigration status. With taxes, “resident” and “nonresident” are tax terms only. They do not change your immigration status.

Even if you are in F-1 or J-1 status, you may be considered either a: 

• nonresident alien for tax purposes, or
• resident alien for tax purposes 

This status is based on how long you have been physically present in the United States, not your visa type. Tax withholding depends on your tax classification.

How Tulane determines your tax status 

You do not need to calculate this on your own. Tulane uses the GLACIER system to determine your tax residency status based on the information you provide.

Tulane University uses the GLACIER Online Tax Compliance System to collect tax information from international students and scholars. To learn more about GLACIER, visit this page. 

Any tax withheld because required information or documentation was not provided cannot be refunded by Tulane University. However, you can appeal for a retroactive refund with the IRS during tax season. 

Tax treaties 

Some students may be eligible for a tax treaty benefit, depending on their country of tax residence and the type of payment they receive. A tax treaty may reduce or eliminate tax withholding in some situations. For more information, visit this page.

Scholarship applied only to tuition and required fees

If a scholarship is applied only to tuition and required fees, that amount is generally not included in gross income and is not subject to tax withholding and reporting rules. 

Scholarship or fellowship with a stipend

If a scholarship or fellowship includes a stipend for housing, meals, or personal expenses, that portion is included in gross income and may be subject to tax withholding and reporting rules.

Scholarship amount exceeds tuition and required fees

If the total scholarship amount is greater than the student’s tuition and required fees, the excess amount may be subject to tax withholding and reporting rules.

Payment for teaching or research services

If a student receives payment in exchange for teaching, research, or other services, that payment is considered compensation for services and is subject to payroll tax withholding.