Submitting 2008 International Student Prizes, Awards and Fellowships

The University has established streamlined processing procedures for commencement prizes and awards as well as summer fellowships made to international students. The procedures are intended to eliminate the need to contact the recipient in advance of the commencement presentation of the prize or award for immigration and tax documentation. However, for summer fellowships the student must provide immigration and tax documentation. Furthermore, if the student did not meet with the University Tax Office, they should schedule an appointment prior to receiving the payment. Appointments are scheduled online at http://www.yale.edu./tax/int/appointments.html

Procedures:

Important: The Accounts Payable office must receive complete check requests by Friday, May 16th in order to provide these checks to the Secretary's Office for presentation at commencement.

 1)   Determine if recipient is an international student (i.e., non- U.S. citizen, non-U.S. permanent resident (i.e. green card holder)). If you are uncertain of the individual's status, contact OISS.

2)   If it is determined that the recipient is an international student, complete the University check request, include name, home address, charging instructions and signature, make certain the citizenship status box on the check request is answered to reflect international status.

3)    For Commencement Prize or Award - attach appropriate documentation, including a description of award. [ Note : For these transactions only , the University will not require the requestor to attach an IIF, I-94 or other tax and immigration documentation.]

4)    For Summer Fellowships - attach immigration and tax documents (IIF and copies of passport ID page, visa stamp, I-94 and Form I-20 (F-1 visa) or Form DS-2019 (J-1 student visa).

5)   Submit the check request to A/P by Friday, May 16, 2008

Tax Treatment : 

The prize or award given to a nonresident alien student will be subject to federal income tax withholding at a rate of 30%. A letter will be included with the check in order to explain the tax withholding and contact information for any questions. Tax treaties generally do not apply to prizes and awards. If the recipient has knowledge of the prize or award in advance, he or she can contact the Tax Office to determine if a tax treaty applies. The amount of prize or award and tax withholding will be reported on a Form 1042-S "Foreign Person's U.S. Source Income Subject to Withholding". 

Fellowships (non-service payments) given to a nonresident alien student will be subject to 14% (F1 or J1 visa) if the funds will be used within the U.S. There is no tax withholding or reporting if the fellowship is for the purpose of study or research outside the U.S. The fellowship may be tax exempt if the tax residency country of the student and the U.S. has a tax treaty agreement and the student completed the required tax treaty form (i.e., Form W-8BEN/W9) prior to receiving the fellowship, with the University Tax Office. The fellowship amount for use within the U.S. and tax withholding (if applicable) will be reported on a Form 1042-S "Foreign Person's U.S. Source Income Subject to Withholding" .