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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

July 12, 2011
July 12, 2011
Scholarship and Fellowship Services

 

Part 14. Scholarships, Fellowships, and Cash Prizes - Table of Contents


14.3. FOREIGN RECIPIENT TAXATION

A. Determining Funding Source

Scholarships/fellowships for foreign recipients can be considered U.S. sourced or non-U.S. sourced. The payment for a foreign recipient will be considered non-U.S. sourced if one of the following applies:

  • The location of the activity is outside the U.S.
  • The funds originate from a foreign third party who also selects the recipient.

B. U.S. Taxation

For foreign recipients, the following information applies to taxation of scholarship/fellowship income by the U.S.:

  • U.S. sourced funding is taxable income.
  • Non-U.S. sourced funding is not taxable income.

For more information concerning the reporting of scholarship taxes, see the Handbook of Business Procedures 14.5. Taxes.

 

 

Part 14. Scholarships, Fellowships, and Cash Prizes - Table of Contents