Tax Issues for Scholarship/Fellowship Awards to Foreign Students

Source: https://finance.uw.edu/sfs/dept/dschol-tax Parent: https://finance.uw.edu/sfs/uw-depts/departmental-scholarships-and-fellowships

Student Fiscal Services issues scholarship/fellowship checks to foreign students per request from departments on campus.

Per IRS regulation, scholarship, fellowship or awarded funds that exceed tuition fee charges are taxable income. The tax rate is 14% for the excess amount. Student Fiscal Services will withhold the tax amount from the student’s account once the award exceeds the tuition charges. Departments can select to pay this tax amount using a departmental budget, in which case the award amount needs to be increased by 14% over the award total. If a department is not paying the tax amount, SFS will withhold the tax amount from the award on the student’s account.

When you award payments to a foreign student at UW, please follow the information and requirements found on the Global Operations Support website. This website will guide you to the appropriate office if you have different types of awards.

If you have questions related to scholarship or fellowship awards for a foreign student, please email our office at taxquest@u.washington.edu