Withholding Federal Income Tax on Scholarships, Fellowships, and Grants Paid to Aliens

 

Payments of scholarships, fellowships, and grants paid to U.S. citizens and resident aliens are not generally reportable to the IRS and are not generally subject to withholding of tax. However, payments of taxable scholarships, fellowships, and grants to nonresident aliens are generally reportable to the IRS and are generally subject to withholding of U.S. Federal income tax.

For more information on scholarships or fellowship grants, see the “Scholarships and Fellowship Grants Subject to Chapter 3 Withholding” topic within the Withholding on Specific Income section of Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.

References/Related Topics

Note: This page contains one or more references to the Internal Revenue Code (IRC), Treasury Regulations, court cases, or other official tax guidance. References to these legal authorities are included for the convenience of those who would like to read the technical reference material. To access the applicable IRC sections, Treasury Regulations, or other official tax guidance, visit the Tax Code, Regulations, and Official Guidance page. To access any Tax Court case opinions issued after September 24, 1995, visit the Opinions Search page of the United States Tax Court.