The Nevada System of Higher Education (NSHE) must determine federal tax residency status under the IRS Substantial Presence Test (SPT) if a student:

  • Is not a U.S. citizen or legal permanent resident for U.S. tax withholding and reporting purposes
  • Receives financial aid, scholarships, fellowships, and awards 

Federal tax residency is not related to nonresident and resident classifications for tuition purposes.

For NSHE to make this determination, students must complete an Alien Information Collection Form and submit it to the nonresident alien tax specialist.

How to Complete the Alien Information Collection Form

Tax Withholding and Reporting Information

Scholarships or fellowships awarded to nonresident alien students require tax withholding and reporting when they are not used to pay qualifying expenses such as allowable tuition and fees.

Room and board, fellowship stipends, living allowances, cash awards, travel payment/reimbursements, and compensation are examples of non-qualifying uses that result in tax withholding and reporting.

Withholding Rates

  • Scholarships or fellowships paid to a nonresident alien student’s account under a F or J immigration status are subject to 14% IRS withholding tax.
  • Scholarships or fellowships paid to a nonresident alien student’s account under any other immigration status are subject to 30% IRS withholding tax.
  • Awards paid to a nonresident alien are subject to 30% IRS withholding tax.
  • Scholarships/fellowships/awards paid to a resident alien are not subject to IRS tax withholding although the payment may be taxable.

IRS Tax Treaties

In some cases, students can claim an IRS tax treaty that can reduce or eliminate tax withholding. A U.S. tax identification number is required in order to claim a tax treaty. Treaty forms must be signed every calendar year in the nonresident alien tax specialist office after the nonresident alien tax specialist determines eligibility. 

Tax Reporting Forms

Here is a list of tax reporting forms that you may receive:

Contact

Still have a question, comment or need help?

Call the nonresident alien tax specialist at 702-895-0872 or email nrat@unlv.edu.