1042-S

How much tax will I be charged?

If you are a U.S. citizen Harvard will not withhold taxes from your taxable scholarship or stipend. If you are a foreign student, the taxable portion of your award will be taxed at a rate of 14%.

Some foreign students come from countries that have a tax treaty with the United States, and can claim exemption from U.S. taxes. International students receiving taxable scholarships from Harvard will receive an e-mail from the Student Accounts Office which will include information about your tax status and tax treaties. If you have questions about your eligibility, you can contact the Read more about How much tax will I be charged?

How does Harvard calculate the amount of my award that may be taxable?

The taxable portion of your scholarship award is calculated as follows:
 
Total of all scholarships from Harvard University
Less: Required tuition and fees charged to your student bill  
Equals: Taxable portion of your award
 
Since it is impossible for the University to determine what each student pays for books, fees, supplies and equipment required for courses of instruction, only the amount of tuition and fees charged to your student account will be included in this calculation.

What portion of my scholarship award may be considered taxable?

U.S. tax law divides scholarships received into two parts. Scholarship that is used for tuition is not taxable, but scholarship that is used for living expenses is taxable. Expenses that are considered tuition include all tuition and fees required for enrollment, books, fees, supplies, and equipment for courses of instruction. Additional amounts, such as amounts provided for room and board or for travel expenses, are taxable.

Will My Scholarship be Taxed?

If you are a U.S. citizen or a resident alien, Harvard will not withhold taxes on your scholarship or monthly graduate stipend. Part of your scholarship may be considered taxable income, however (please see below). Permanent residents are treated like U.S. citizens for tax purposes.

If you meet the tests for residency (see Internal Revenue Service Publication 519), please notify the Student Accounts Office of your status change.

What information is reported to the Internal Revenue Service (IRS)?

If you are a foreign student and your award is in excess of your tuition and required fees, then Harvard is required to report the amount of the excess and any withholding you were charged to the IRS on Form 1042-S. Harvard must make this report even if you have no withholdings and no tax liability because of a tax treaty.
 

What is a Form 1042-S?

Form 1042-S is issued to foreign students who have received scholarships that exceed tuition and mandatory fees. Form 1042-S is a report of tax withheld and is mailed in mid-March.

Graduate students who have questions about the information on this form can contact University Tax Services at (617) 495-8500 (option 5). Undergraduates with questions on the 1042-S can contact Student Accounts.