International Tax Withholdings

Note that the below information applies to International Students only.

What is taxable income on the student account?

1. Scholarships Exceeding Qualified Tuition and Fees

• FWIT Tax will have entry description   “Scholarship Withholding”
• These students might NOT have CREDIT BALANCES (getting refunds)!
• 14%  tax applied to EXCESS amount (exceeding qualified tuition and fees) for   Visa types F1, J1, M1, Q1, Q2
• 30%  tax applied to EXCESS amount for   all other Visa types.

2. Credit Balances (Refunds)

A credit balance is any amount that exceeds all charges on the student account.

• FWIT Tax will have entry description “Foreign Withholding Tax”
• If source of credit balance is NON-SCHOLARSHIP related, 30% tax applied for any Visa type.
• For a credit balance that is partially scholarship, student may be taxed on any non-scholarship portion if scholarship exceeds eligible tuition and fees as stated above.
• Any Scholarship Withholding tax will be assessed first.
• Tax treaties do not apply to taxes on refunds.

Frequently Asked Questions

I was taxed. What will happen next?

All students with Withholding Taxes will automatically be added into the Glacier Tax Compliance system. Check your TAMUSA email for further instructions and be sure to keep the university updated with address changes. For assistance, departments awarding scholarships may also email   sbs@tamusa.edu  to get their students into Glacier.

How can I be tax exempt?

Students can register with Glacier and provide documentation to determine TAX TREATY eligibility. No SCHOLARSHIP tax will be charged for these individuals.  Being from a country with a tax treaty does NOT automatically make the student exempt.  

Students may qualify for US tax residency status in Glacier by passing the Substantial Presence Test (SPT), also known as “the 183 day rule.” This means they are no longer taxed on their TAMUSA student account and instead may be subject to annual federal tax directly with the IRS. Find out more about the   Substantial Presence Test  then contact   sbs@tamusa.edu  if you feel you may qualify and would like to submit documentation. 

Exemptions will take effect in the calendar year eligibility was determined and is not retroactive. Tax withholdings will resume and be recalculated for the calendar year tax treaty eligibility expires.

Tax Calculation Examples