International Tax Withholdings

What is taxable income on the student account?

For International students only:

Scholarships (including Waivers, Grants, and certain 3rd party payments) that EXCEED qualified tuition and fees.

  • FWIT Tax will have entry description “Scholarship Withholding”
  • These students might NOT have CREDIT BALANCES (getting refunds)!
  • 14% tax applied to EXCESS amount (exceeding qualified tuition and fees) for Visa types F1, J1, M1, Q1, Q2
  • 30% tax applied to EXCESS amount for all other Visa types.
  • Qualified tuition and fees include:


Tuition (Designated, Grad Differential)

Lab/Instructional Enhancement Fee

Academic Advising Fee

Athletic Fee

Environmental Service Fee

Graduation Fee

Information Tech (Computer Use) Fee

International Education Fee

Library Access Fee

Recreational Sports Fee

Student Center Fee

Student ID Card Fee

Student Service Fee

Transcript Fee

Excessive Hour Tuition Fee

3-Peat Tuition Fee

University Services Fee

  • All other Charges NOT considered Qualified tuition and fees, including but not limited to:

Hospital Fee

Transportation & Safety Fee

Orientation Fee

Late Payment/Registration Fee

Loan Processing/Interest Fee

Reinstatement Fee

Residence Hall Charges

Meal Plans (Board)

International Insurance Fee

Parking Permits & Tickets



Credit balances (REFUNDS); any amount that exceeds ALL charges on the student account.

  • FWIT Tax will have entry description “Foreign Withholding Tax”
  • If source of credit balance is NON-SCHOLARSHIP related, 30% tax applied for any Visa type.
  • For a credit balance that is partially scholarship, student may be taxed on any non-scholarship portion if scholarship exceeds eligible tuition and fees as stated above.
  • Any Scholarship Withholding tax will be assessed first.
  • Tax treaties do not apply to taxes on refunds.

I was taxed. What will happen next?

All students with Withholding Taxes will automatically be added into the Glacier Tax Compliance system. Check your TAMUK email for further instructions and be sure to keep the university updated with address changes. For assistance, departments awarding scholarships may also email tax@tamuk.edu to get their students into Glacier.

1042-S Tax Statement:

Students with Withholding Taxes will receive this form in March of the next calendar year. This form is used to report the total taxable amount and withholding taxes charged for the calendar year. 

1042-S Duplicate Request Form (Internationals Only)

HELPFUL NOTES:

Students can register with Glacier and provide documentation to determine TAX TREATY eligibility. No SCHOLARSHIP tax will be charged for these individuals. Being from a country with a tax treaty does not automatically make the student exempt. 

Students may qualify for US tax residency status in Glacier by passing the Substantial Presence Test (SPT), also known as “the 183 day rule.” This means they are no longer taxed on their TAMUK student account and instead may be subject to annual federal tax directly with the IRS. Find out more about the Substantial Presence Test then contact tax@tamuk.edu if you feel you may qualify and would like to submit documentation. 

Exemptions will take effect in the calendar year eligibility was determined and is not retroactive. Tax withholdings will resume and be recalculated for the calendar year tax treaty eligibility expires.

Tax Calculation Examples:

Qualified Tuition & Fees

All Other Charges TOTAL Charges Scholarships, Waivers, and 3rd party All Non-Scholarship Payments TOTAL Payments Credit Balance Taxable Amount Tax Rate FWIT Tax Applied Refund Amount
  3,000.00 2,000.00 5,000.00 5,000.00 .00 5,000.00 .00 2,000.00 14% (F1) 280.00 n/a
3,000.00 2,000.00 5,000.00 5,000.00 .00 5,000.00 .00 2,000.00 30% (XX) 600.00 n/a
3,000.00 .00 3,000.00 5,000.00 .00 5,000.00 2,000.00 2,000.00 14% (F1) 280.00 1,720.00
3,000.00 .00 3,000.00 5,000.00 .00 5,000.00 2,000.00 2,000.00 30% (XX) 600.00 1,400.00
3,000.00 .00 3,000.00 .00 4,000.00 4,000.00 1,000.00 1,000.00 30% 300.00 700.00
3,000.00 2,000.00 5,000.00 500.00 5,000.00 5,500.00 500.00 .00 n/a .00 500.00
3,000.00 2,000.00 5,000.00 500.00 6,000.00 6,500.00 1,500.00 1,000.00 30% 300.00 1,200.00

   

Internal Revenue Service References:

This page was last updated on: March 1, 2017