Tax Treaties Information for Students and Visiting Scholars
The United States has income tax treaties with a number of countries that may provide eligible international students, scholars, and employees with reduced tax rates or exemptions on certain types of U.S. sourced income. Eligibility and benefits vary by country and treaty provision. Please review the lists below to determine whether your country has an applicable tax treaty with the United States for the specific income you are receiving. If your country is not listed, there is no income tax treaty.
Students with Wages
- Individuals who claim tax treaty benefits on employment income will receive a Form 1042-S and may receive a Form W-2 for wages earned over the treaty limit (if any). Both forms are required when preparing and filing a U.S. tax return.
Visiting Scholars
- Students or scholars who receive taxable scholarship or fellowship payments will receive a Form 1042-S if they are in a nonresident alien tax status.
Students with Scholarships
- To claim tax treaty benefits, you must have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN), and you must complete and update your Sprintax Calculus profile and sign your tax treaty forms annually.
| Income Type | Federal Withholding Rate |
|---|---|
| Wages* | Withheld using graduated rates (10%-35%) after applying specific nonresident alien payroll withholding. |
| Scholarships/Fellowship* | Taxed at a rate of 14% for students on F, J, M, or Q visas and 30% for other visa types, unless reduced by a tax treaty. |
*Wages and certain scholarships/fellowship payments are also subject to an Illinois income tax of 4.95%.