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Scholarship Stipend/Fellowship Payments

Required Documents for Payment to Foreign Scholarship/Fellowship

Change to Permanent Resident

Permanent Resident Applicant

UPP-192
Employment Authorization Card (if available)
W-9 Form

Asylee/Refugees

UPP-192
Passport Stamp indicating Asylee or Refugee status
W-9 Form

All Other Visa Statuses

UPP-192
Immigration Document
I-94
W-8BEN Form or W-9 Form (if student is a Resident for Tax)

Payments to Foreign Individuals

Taxes for Foreign Scholarship Stipend/Fellowship

Please click here for Taxes for Foreign Scholarship/Stipend

Foreign Nationals Studying Overseas

Resident for Tax Alien Studying Overseas

This person has been in the U.S. long enough under a visa status that allowed this person to become a Resident Alien for Tax Purposes (RA). As a RA, this person is not exempt from taxes because they are studying outside of the U.S. RAs are taxed on their worldwide income.

Required to complete UPP-192 and W-9 Form and attach any available documents.
Letter from the Dean of Students is required stating dates of study, country of study, etc.
This income is taxable and reportable in the U.S. – a letter summarizing the stipend payments will be send by January 31.
The RA will be treated as a RA until December 31 of the year they left the U.S. Beginning January 1 of the subsequent year, if this person will remain outside of the U.S., they will be treated as a NRA.

Nonresident for Tax Alien Studying Overseas

This person has never been to the U.S. (other than tourist or short business activities) or has been in the U.S. for a short enough period to be considered a Nonresident Alien for Tax Purposes (NRA).

Required to complete UPP-192 and W-8BEN Form and attach any documents.
If this person has never been to the U.S., only a W-8BEN Form and letter is required.
A letter from the Dean of Students is required explaining what activities are being performed, dates of activities, location, and citizenship of employee.
There is no requirement for tax withholding on these payments

Post Doctoral Fellowships

Must complete same paperwork and attach the appropriate documents as regular stipend recipients including UPP-192 and W-8BEN Form (or W-9 Form for residents for tax).
If the postdoctoral fellow is a resident for tax, no taxes will be withheld at source. If the postdoctoral fellow is a nonresident for tax, 14% in federal tax withholding is required. No state taxes will be withheld, although this payment is required to be reported to the Illinois state government.
Follow tax treaty exemptions for stipend/fellowship, not teacher/researcher or student compensation articles.
If this is a zero salary PDF, an immigration document is required to be submitted to Payroll Services.