Student Loans and Scholarships

International Taxes

The Office of Student Loans and Scholarships is required to review all United States based financial aid awarded to international students and determines if the aid is subject to tax. Foreign persons who receive United States based financial aid (Grants, Fellowships, Assistantships, Outside and University Scholarships) that is in excess of tuition and fees may be required to pay tax on the excess amount.

Tax Treaty Countries

Students who are citizens of a country that has a tax treaty with the United States are exempt from the tax on their excess aid. In order to claim this exemption, the student must complete Form W-8BEN. Form W-8BEN is a certificate that establishes foreign status to determine exemption from taxes on United States based financial aid. For some countries, a student’s eligibility to qualify for this exemption terminates after living in the United States for a specified time. Students whose country of citizenship does not have a tax treaty with the United States, or whose treaty eligibility has ended, are taxed 14% on the amount of their aid that exceeds their tuition and fees.

List of tax treaty countries and eligibility terms

If you are eligible to claim tax exemption, please complete Form W-8BEN and submit the following two items to the Bursar’s Office.

1. Form W-8BEN
2. Copy of Form I-94 or DS 2019 (J-1 Exchange students) or Copy of Form I-94 or -I-20 (F-1 Students)

Bursar's Office
103 Shields
University Park, PA 16802

US Resident for Tax Paying Purposes

If you are from a country that does not have a tax treaty with the United States, or if your eligibility to claim a tax treaty has ended, you may still be exempt from the taxes if you qualify as a United States resident for tax paying purposes. In order to qualify as a resident for tax paying purposes, you must be a student who is on a F-1 or J-1 visa and have been present in the United States for 5 years plus 183 days by the end of the tax year. If you feel that you are in this category, please complete Form W-9 . The worksheet attached to Form W-9 will help you to determine if you truly are a resident for tax purposes. Additional information regarding Form W-9 can be found at the IRS web site: http://www.irs.gov/pub/irs-pdf/iw9.pdf. Submit Form W-9 to:

Bursar's Office
103 Shields
University Park, PA 16802

Social Security Number and Tax Identification Number

The Internal Revenue Service (IRS) requires that we include either a valid Social Security Number (SSN) or a Tax Identification Number (TIN) for each student we report. If you receive notification from the Office of Student Loans and Scholarships that we do not have your Social Security Number or a Tax Identification Number, please supply it to us. See below to determine if you qualify for a Social Security Number or need to apply for a Tax Identification Number.

You can apply for a SSN if you are employed at the University or have an offer to work on campus.

To apply for a SSN contact:

ADDRESS:
Social Security Administration
Suite 2
901 University DR
State College, PA 16801

PHONE:
(814) 238-5035

HOURS:
Monday - Friday
9:00 AM - 4:00 PM

All students should contact International Student Services at 410 Boucke to determine if you qualify to apply for a SSN or visit http://www.international.psu.edu/iss/social_security.html.

If you are not eligible for a SSN you must apply for a TIN - Tax Identification Number.

To apply for a TIN, complete Form W-7.

On Form W-7, select Box F for the section "Reason you are submitting form W-7".

Box f - Nonresident alien student, professor, or researcher filing a U.S. tax return and not eligible for an SSN.

Submit the TIN form to:

Internal Revenue Service
2038 Sandy Drive
State College, PA 16803

PHONE:
(814) 234-8735

HOURS:
Thursday
9:00 AM - 12:30 PM
1:30 AM - 3:00 PM

If you choose to mail the W-7 form to IRS, you must have the form notarized before you mail it.

To view the most frequently asked questions relating to the tax process go to our FAQ page or you may contact us with your questions.

This information is available in alternative format upon request