W-8BEN forms may be required from scholarship or grant recipients who are not U.S. persons (nonresident aliens for tax purposes) and to whom we issue direct payments. This form certifies foreign status under IRS regulations and determines whether tax withholding applies to your award. Funds may be considered taxable income if they do not meet the requirements of tax-free educational expenses.
The IRS requires payers to document a recipient's foreign status before issuing payment. Recipients who are not U.S. citizens or resident aliens for tax purposes and whom we issue direct payments for Unqualified expenses are must complete a W-8BEN. If you are a U.S. citizen, green card holder, or meet the substantial presence test, complete a W-9 instead — see Tax Implications and W-9 Requirements for Direct Payments.
If you use award funds towards non-qualified educational-related expenses, you are required to fill out and upload a completed W8-BEN and your award may be subject to withholding up to 30%. Nonresident recipients receive a Form 1042-S reporting the payment and any withholding, issued by March 15 of the following year, if applicable.
Qualified Education Expenses
Qualified Education Expenses
Tuition and fees required to enroll at or attend an eligible educational institution
Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. These items must be required of all students in your course of instruction
Unqualified Expenses
Unqualified Expenses
Room and board
Travel
Research
Clerical help
Equipment and other expenses that aren't required for enrollment in or attendance at an eligible educational institution
Other expenses unrelated to qualified education expenses.
For any tax-related questions or advice, please consult with your tax advisor.