Scholarship and Fellowship Payments
If you receive scholarship and fellowship payments from only non-U.S. sources, no reporting or withholding is required. You will not receive a 1042-S from the University of Massachusetts Amherst.
Any US sourced scholarship or fellowship used to pay qualified tuition and related expenses are not taxed; however, IRS regulations require that 14 percent of scholarship and fellowship payments that pay non-qualified expenses be withheld as federal income tax. This applies to students on F-1 or J-1 visas, unless you are a resident of a country with which the United States has an applicable income tax treaty.
Students who are required to have the tax withheld will receive 100% of their scholarship or fellowship applied to their tuition bill; the 14% tax will then be posted to the bill as a ‘tax withholding’ charge.
Qualified Tuition and Related Expenses
Scholarships and fellowships that pay these charges are considered non-taxable:
- Tuition and Mandatory Fees: Tuition, Technology Fee, Student Activities Fee, Lab Fees, Service Fee, Graduate Senate Tax, Course Fees
- Schools and Colleges Fees: Honors College Fee, ISOM Fee, Engineering Fee, Nursing Fees, CICS Fees, Music Fees
- Other Enrollment Related Fees: New Student Enrollment Fee, Commencement Fee, Graduate Entering Fee, University Plus Registration Fee
Scholarships and fellowships that pay these charges are subject to a 14% tax:
- Room and Meal Plan Fees
- Health Fees: Student Health Fee, Student Health Insurance Plan Fees, Family Insurance Plan Fees
- Other Fees: Library fines and fees, Parking permits and fines, Athletics fees, Late Fees, Fees related to non-credit courses