Is my scholarship considered taxable income?
General Financial AidAll scholarship and/or grant funds that exceed qualified expenses as determined by the Internal Revenue Service (IRS) are considered to be taxable income. Qualified expenses are limited to tuition and mandatory fees, and do not include funds awarded for housing or meals.
US students and families should work with a tax professional to ensure they are properly reporting taxable scholarship income when they file their taxes annually. Form 1098-T will be provided to eligible US students. Questions regarding this form should be directed to Campus Billing.
Dartmouth is required to withhold tax from the accounts of international students at a rate of 14%. This applies to all scholarship, grant, and other benefits above the tuition and fee threshold that are credited to the student account. The tax amount will reflect as a charge to the student billing account for international students and will appear on the follow-up bill each term.
Some countries have a tax treaty with the United States, which exempts citizens of those countries from the tax withholding requirement. In order to be eligible for tax treaty benefits, a student must complete a Sprintax Calculus profile (including uploading of their supporting documents) no later than November 1st of the current year.
Questions about your tax calculation or eligibility for a tax exemption treaty should be directed to Campus Billing.
Limited student loans may be available to international students to assist with covering the tax charges if needed.
The Office of Visa and Immigration Services (OVIS) provides software and tax workshops to assist international students with filing a US tax return to report taxable earnings and scholarships. In some cases, filing a tax return can result in a refund of taxes paid. Form 1042-S will be provided to eligible international students. Questions regarding this form should be directed to Payroll.