Required Documents for Payment to Foreign Scholarship/Fellowship
Change to Permanent Resident
Permanent Resident Applicant
All Other Visa Statuses
- Immigration Document
- Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Receipt for SSN or ITIN
- W-8BEN Form or W9 Form (if student is a Resident for Tax)
Taxes for Foreign Scholarship Stipend/Fellowship
Aliens Studying Overseas
Resident for Tax Alien Studying Overseas
This person has been in the US long enough under a visa status that allowed this person to become a Resident Alien for Tax Purposes (RA). As a RA, this person is not exempt from taxes because s/he is studying outside of the US. RAs are taxed on their worldwide income.
- Required to complete UPP-192 and W9 Form and attach any available documents.
- Letter from the department is required stating dates of study, country of study, etc.
- This income is taxable and reportable in the US – a letter summarizing the stipend payments will be send by January 31.
- The RA will be treated as a RA until December 31 of the year s/he left the US. Beginning January 1 of the subsequent year, if this person will remain outside of the US, s/he will be treated as a NRA.
Nonresident for Tax Alien Studying Overseas
This person has never been to the US (other than tourist or short business activities) or has been in the US for a short enough period to be considered a Nonresident Alien for Tax Purposes (NRA).
- Required to complete UPP-192 and W-8BEN Form and attach any documents.
- If this person has never been to the US, only a W-8BEN Form and letter is required.
- A letter from the department is required explaining what activities are being performed, dates of activities, location, and citizenship of employee.
- There is no requirement for tax withholding on these payments
Post Doctoral Fellowships
- Must complete same paperwork and attach the appropriate documents as regular stipend recipients including UPP-192 and W-8BEN Form (or W9 Form for residents for tax).
- Do not submit W-4 and IL-W-4 forms. This is not employment.
- If the Post-Doctoral Fellow is a resident for tax, no taxes will be withheld at source. If the Post-Doctoral Fellow is a nonresident for tax, 14% in federal tax withholding is required. No state taxes will be withheld, although this payment is required to be reported to the Illinois state government.
- Follow tax treaty exemptions for stipend/fellowship, not teacher/researcher or student compensation articles.
- If this is a zero salary PDF, an immigration document is required to be submitted to Payroll Services. Please include a note indicating zero salary PDF.