Every person in the US, both resident and non-resident, is allowed to receive funding for tuition without paying taxes, but any grant/scholarship funding that pays for housing and food is taxable for all persons in the US, regardless of where the funding came from. 

The taxable (nonqualified) portion of a scholarship or fellowship paid to an NRA in F-1, J-1, M-1, Q-1, or Q-2 is subject to Federal income tax withholding at the rate of 14%.  This will be roughly $2500-$4000 per year, depending on the scholarship level.  This number is also reflected on page 2 of your Financial Aid Award Letter.

On a student bill, the 14% taxation is charged as "Tax Withholding”. This money is billed to you each fall and then paid to the IRS by the college’s Office of Tax and Compliance.  The same process will happen again in the spring, with a charge of “Tax Withholding” on your student account that is paid to the IRS by the college’s Office of Tax and Compliance.

Income tax returns are forms submitted by individual and joint taxpayers to federal and state taxing authorities to report various types of income and to calculate tax liability. In many countries where our students come from, taxes are deducted automatically from income with taxpayers not being responsible for any forms. In the United States, it is each taxpayer’s responsibility to complete the appropriate tax forms and provide those to the government each spring.

In the US, we file federal income tax returns during the first part of the calendar year to report our earnings and determine our taxes with the Internal Revenue Service (IRS) for the previous year.  For example, in 2021, those required to file will complete and submit a 2020 income tax return.  In Colorado, we also file a state income tax return with the State of Colorado’s Department of Revenue to determine our state tax bill.

All international students and scholars who have been in the U.S. for any portion (even 1 day) of the calendar year must file a federal form with the Internal Revenue Service, with details on your US-sourced income or to explain how your presence in the US does not require taxation as a US resident. An income tax return or Form 8843, if no US-sourced income has been earned, will satisfy these requirements.  This is true even for students who come from countries that have tax treaties with the United States.

Many countries have treaties with the United States that reduce or eliminate the taxes paid by their citizens who are in the U.S.  To qualify for treaty exemption, you must be a citizen or a permanent resident (generally, a noncitizen who files a resident income tax return) of the "treaty country," and the type of payment must be exempt under that specific treaty. In addition, the IRS requires a U.S. federal identification number, evidence of nonresident alien status (i.e., the substantial presence test), evidence of proper work authorization (i.e., visa), and a properly completed IRS "treaty exemption form" (i.e., Form 8233 for wages, fees, honoraria). Information on tax treaties is available from the IRS (Pub.901, U.S. Tax Treaties).

The Substantial Presence Test

A resident for tax purposes is a person who is a U.S. citizen or a foreign national who meets either the “green card” or “substantial presence” test as described in  IRS Publication 519, U.S. Tax Guide for Aliens.

In general:

• F and J student visa holders are considered resident aliens for tax purposes after five calendar years in the U.S.
• J researchers and professors are considered resident aliens for tax purposes after two calendar years in the U.S.
• H-1, TN, and O-1 visa holders are considered resident aliens for tax purposes once they meet the “substantial presence” test.

A non-resident for tax purposes is a person who is not a U.S. citizen and who does not meet either the “green card” or the “substantial presence” test as described in IRS Publication 519, U.S. Tax Guide for Aliens.

In general:

• F and J student visa holders are considered non-resident aliens for tax purposes during their first five calendar years in the U.S.
• J professors and researchers are considered non-resident aliens for tax purposes during their first two calendar years in the U.S.
• H-1, TN, and O-1 visa holders are considered non-resident aliens for tax purposes until they meet the “substantial presence” test.

A foreign national with non-immigrant visa status may be considered a resident alien for tax purposes as soon as he/she meets the “substantial presence” test for a calendar year (January 1 to December 31). To meet this test, the person must be physically present in the U.S. on at least: 

• 31 days during the current calendar year and
• 183 days during the three-year period which includes the current calendar year and the two years immediately preceding. The individual should count: all the days he/she was present in the U.S. in the current year, 1/3 of the days present in the U.S. the preceding year, and 1/6 of the days present the year before that.

Exceptions to the time counted toward the Substantial Presence Test for students and scholars in F-1 and J-1 status (and their dependents):

• A J-1 professor or researcher who is complying with the requirements of the visa, does not count days for the first two calendar years.
• An F-1 or J-1 student, who is complying with the requirements of their visa, does not count days for the first five calendar years.

For an international student, the IRS requires that the college send the tax payment for each student who has grants exceeding tuition and fees and the student must pay the college directly.  This is a government requirement and not something that CC can change.  In the spring, you will file your tax return and determine if you receive any of those funds as a refund or if you owe additional funds.

The simplest explanation is that state and federal taxes are different and are sent to different offices, one to the state government and one to the IRS.  Federal taxes are required to be paid each semester.  The state of Colorado allows all residents who live in the state to pay their taxes at the end of the year directly to the state.

Colorado College does not report payments to the home country, but it appears that IRS reports income that is exempt under a treaty to the home country.  The Embassy or consulate of your home nation should be able to provide you with more information about this process if you have questions.

The college utilizes Sprintax to assist in managing tax treaties and applicable laws.  You are required to submit documentation through Sprintax in order for the College to determine how you will benefit from any applicable tax treaty.  If you have received grants that exceed tuition and fees, any research grants or awards, and/or have been employed in a campus job you will receive a tax form (Form 1042S or W-2 depending on treaty status and Sprintax completion) from the College and you are required to submit a tax return at the end of each calendar year.    

Tax advising is a specialized skill only really appropriate to tax specialists.  For this reason, the college is not able to provide tax filing advice, but you will be provided access to tax filing software through Sprintax Tax Prep.  Sprintax has a wide range of features from video guides to chat options to help you get questions answered as you work on your tax preparation.  In addition, you may bring your questions to group workshops provided in March and April of each year. If you have more complex needs, you may hire a tax accountant off-campus that will charge you a fee for the service.  Please note, international students are unable to file tax forms electronically, Sprintax is a software designed to help you generate your federal tax forms.

No. There is no resource on campus to pay the tax responsibility you will have.  You must plan for this in your budgeting process.

A tax return must be completed in Sprintax, printed, and postmarked (mailed at a post office) by the end of the business day April 15 each year.  If April 15 falls on a weekend or holiday, it must be postmarked by the next business day.

No, ISSS staff are not tax experts and cannot provide tax advice.  To assist you, the college offers you access to Sprintax.  Sprintax is a user-friendly tax preparation software created specifically for international students and scholars.  Sprintax will help you navigate U.S. federal tax forms, residency status, tax treaties, exemptions, and deductions.

View the Sprintax instructions PDF.

Yes, you will be able to access Sprintax while you are abroad to complete the mandatory tax returns.  You will receive an email with your Sprintax access code and important Sprintax information.

No, nonresident aliens cannot file tax returns electronically. Once you supply Sprintax with all of the requested information, Sprintax will auto-fill the appropriate tax forms. To complete your tax filing requirement, you must print the forms and mail them to the address provided by Sprintax. The address will depend on the form you are filing.

Payment of income tax due is not voluntary; it is required by law. One of the conditions of your visa is to comply with U.S. law. If you owe taxes and don't file, the IRS can assess penalty and interest and seize U.S. bank assets for repayment. Fines and penalties can often amount to more than the original tax debt.

There can also be immigration consequences for failing to file tax forms. For example, applicants to change from F-1 to H-1B (the professional worker visa) can be asked by the U.S. Citizenship and Immigration Services office to submit copies of previous years' income tax forms as part of their H-1B application. Applicants for permanent residency ("green cards") are frequently asked to show proof of income tax filing for previous years in the U.S. A person who appears at a U.S. consulate abroad for consular processing of a permanent residency application may be asked to produce U.S. income tax forms from their previous years in the U.S. 

In extreme cases, you could lose your legal immigration status in the U.S.

Contact CC’s Tax and Compliance Office at tax.compliance@coloradocollege.edu.  You can also visit the Internal Revenue Service (IRS) page for international students and scholars.