Policies and Procedures
Procedure 1119.1 – Completing Tax Withholding Forms as a Foreign National Scholarship/Fellowship Awardee
August 18, 2009
August 24, 2009
Director of Payroll Services
Foreign nationals receiving scholarship and fellowship assistance must complete taxation forms. These forms are used in determining the appropriate method of taxation and withholding. To determine which forms should be completed, there are certain rules and regulations that are applied to each foreign national.
Forms and Instructions
Completion of the following forms is required of foreign nationals receiving financial aid awards:
a. Form PR-100, Foreign National Information Form. Completed by foreign nationals to determine whether they are resident or nonresident aliens for tax purposes. This form also provides information to ensure proper tax withholding and reporting.
b. Form W-8BEN. Documents that the nonresident alien is not subject to backup withholding rules, but does not exempt the payee from the 30% (or lower treaty) nonresident withholding rates. It is used to claim an exemption from income tax withholding based on an exemption for scholarship/fellowship grants under tax treaties between the U.S. and the grantee's country of residence.
Other Forms, Instructions, and Publications for Foreign Nationals from the Internal Revenue Service (IRS):
Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Corporations
Publication 519, U.S. Tax Guide for Aliens
Publication 970, Scholarships and Fellowships
Form W-7, Application for Individual Taxpayer Identification Number
Form 1040NR, U.S. Nonresident Alien Income Tax Return
Instructions for Form 1040NR, U.S. Nonresident Alien Income Tax Return
Instructions for Forms 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons and
1042-S, Foreign Person's U.S. Source Income Subject to Withholding
August 24, 2009