Form 1042-S (International Students only)
Form 1042-S is required by the IRS to be provided to all non-resident aliens who receive institutional scholarships, grants or other awards greater than assessed eligible tuition and fees charged by the University. Since the form is on a cash basis, all transactions posted during the calendar year, regardless of the term for which the transaction was posted, are considered when generating the 1042-S form. The chart below illustrates the 1042-S cycle for a typical student beginning in a fall semester.
Calendar (Tax) Year |
2018 |
2019 |
2020 |
2021 |
2022 |
Enrollment Year |
Fall 2018 Freshman |
2nd year |
3rd year |
4th year |
May 2022 Graduate |
|
Fall 2018 Charges |
Spring 2019 Payments |
Spring 2020 Payments |
Spring 2021 Payments |
Spring 2022 Payments |
|
Fall 2018 Payments |
Summer 2019 Charges |
Summer 2020 Charges |
Summer 2021 Charges |
|
|
Spring 2019 Charges |
Summer 2019 Payments |
Summer 2020 Payments |
Summer 2021 Payments |
|
|
|
Fall 2019 Charges |
Fall 2020 Charges |
Fall 2021 Charges |
|
|
|
Fall 2019 Payments |
Fall 2020 Payments |
Fall 2021 Payments |
|
|
|
Spring 2020 Charges |
Spring 2021 Charges |
Spring 2022 Charges |
|
|
|
|
|
|
|
As illustrated, the initial form contains two terms of charges and only one term of payments and the final form contains no charges and the last term of payments. This cycle will result in lower withholding for the first year, often $0, and a higher withholding the final year, 14% of all institutional spring financial aid. Keep in mind, this is a general view of the process. If for any reason, the student does not make payments as scheduled or participate in the ability to pre-register for courses, the terms included in Form 1042-S could vary as a result.
What are you required to do with Form 1042-S?
As a general rule, if you are issued a Form 1042-S, you are required to file a tax return, Form 1040NR, with the IRS (
www.irs.gov). You may be entitled to a full or partial refund of the funds withheld from your institutional scholarships as listed box 7a. Should you have any questions about your legal requirements, you should contact either the IRS or a tax professional. The University can only guarantee the accuracy of Form 1042-S. The student’s requirements for the proper reporting of Form 1042-S is a legal tax matter and the University cannot provide tax advice.
How do you receive Form 1042-S?
All 1042-S forms will be distributed by February 28th of the following year (i.e. February 28, 2021 for the 2020 calendar year). The forms will be mailed to the home address on file at the time of distribution.
Are exemptions available?
IRS Publication 515 requires United States payers (i.e. the University) to assess a 14% withholding to any taxable scholarship income for non-resident aliens. For more information about what portion of scholarships (Code 16) may be taxable and/or to determine if you are eligible to claim an exemption based on an eligible tax treaty, please visit
https://www.irs.gov/pub/irs-utl/Tax_Treaty_Table_2.pdf. The withholding can only be waived if the Student Accounts Office is provided a completed Form W-8BEN or Form 8233 based on an eligible tax treaty for each calendar year enrolled.