IRS Form 1042-S

Non-Resident Aliens are subject to federal tax withholding in regards to scholarships and grants. The U.S. tax law divides scholarships or grants received into two parts. The part used for tuition and related fees is not taxable, but the part used for living expenses (room & board, travel, etc.) is taxable. Annually LSSU produces IRS 1042-S forms for the preceding calendar year for the IRS and applicable students. Enrolled degree seeking non-resident alien students have a 14% tax withholding in regards to the above, and may have additional exemptions based on current tax treaties (please see below).

The LSSU Business Office will work to email applicable students at the beginning of the semester to request the following:

  • Complete the W8-BEN form found on the IRS website, https://www.irs.gov/forms-pubs/about-form-w-8-ben ,and bring the form to the LSSU Business Office. A U.S. taxpayer identification number is required for this form. The W-8BEN is good for 3 years after date of signature.
  • If you do not already have a social security number (SSN) or individual taxpayer identification number (ITIN), go to the application for ITIN on the IRS website for the W-7 form, https://www.irs.gov/forms-pubs/about-form-w-7.

For more information on Part II of the W-8BEN form, please see the IRS site for Tax Treaty information, https://www.irs.gov/forms-pubs/about-publication-901. Some Tax Treaties offer a reduced rate or exemption in regards to U.S. income tax. . Please keep in mind that not all treaties are the same, and we suggest that you review your country’s treaty.

Please plan for the following:
  1. Have fund to pay your bill.
  2. File a U.S. tax return 1040 NR form found on the IRS website, https://www.irs.gov/forms-pubs/about-form-1040-nr The 2022 1040 NR will be due 15 Apr 2023. The 1042-S with the tax data needed will come out around 1 Feb 2023 for the 2022 tax year.