Nonresident Alien Tax Office Towson University
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Scholarships/Fellowships

  • A scholarship/fellowship may have both non-taxable (qualified) and taxable (non-qualified) items.

    • Qualified non-taxable items include:

      Tuition
      Book Allowance
      Mandatory University Fees and Technology Fees
      Mandatory Health Insurance

      Supplies

      Equipment

    • Non-qualified taxable items include:

      Room and Board
      Fellowship Stipend (which does not require a service to be performed)
      Living Allowance
      Cash Award
      Travel Award

  • The taxable portion of a scholarship is subject to 14% withholding tax unless exempt by a tax treaty.

  • Even if a scholarship or fellowship is not paid directly to the individual, tax is still applied to the total non-qualified amount.

  • For students with taxable non-qualified scholarship amounts, Towson University will charge the amount of tax due to the student’s account unless a tax treaty applies, which requires a Taxpayer Identification Number (either SSN or ITIN).

  • For more comprehensive information see IRS Publication 970 – Tax Benefits for Education: http://www.irs.gov/pub/irs-pdf/p970.pdf


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