Tax Treaties

International Student and Scholar Services | Tax Treaties

If you will be working in the United States, it is important to explore the terms of any applicable tax treaty that may lower your tax obligation.  Tax treaties may cover a variety of different types of income.  Therefore it is important to look at the various types of income covered by a treaty that may apply to you.

• Refer to Publication 901

To claim benefits of a tax treaty, you must file form 8233 annually with the payroll office of your employer.
International students may receive a variety of financial assistance during their studies in the United States whether or not this money is taxable depends upon the nature of the money:

1. A true scholarship ñ money received for tuition, fees, books, supplies with no expectation that services be provided in return.  This is not taxable as long as it is spent for the purposes intended.
2. Money received from a United States source for room and board, again with no expectation of services in return.  Usually, this money is taxable but some countries have treaties covering this type of income for a certain period of time.  This would be coded as Income Code 15. (Refer to chart on next page.)
3. Money received (or waiver of charges) on condition that the student provides services such as teaching or research is treated as wages and not as a scholarship.

The following tables are reproduced here to serve only as a general guide in determining the types of tax benefits to which you may be entitled:

• Scholarships
• Student Wages