Charged extra 30% taxes for scholarships I received
 

My university officially starts Monday, and I just recently received an email.

The financial aid office has charge me with a "Non-Resident Alien Tax" which is equivalent to 30% of the scholarships I received.

I thought that scholarships were tax exempt. Why am I being charged with an additional 30% tax if scholarships are tax exempt.

What is the actual "legal status" of taxes, scholarship-wise? Has anyone had a similar situation. Thank you.

EDIT: I just went to talk to the financial aid office at my University. They put my information into the tax computer, and for tax purposes, I am considered a resident alien, which means no scholarships are being withheld.

:)

I would suggest you guys try it talking to them if you have the same problems. Apparently, there are numerous students who are on DACA at my university.

Hopes this helps!

Re: Charged extra 30% taxes for scholarships I received
 

Don't know, try calling and finding out.

Re: Charged extra 30% taxes for scholarships I received
 

They used to withhold 14% of my scholarships when I was in college. But they took that 14% from the amount that was left over after paying my classes.
here's some info:
In general, the taxable portion of a scholarship or fellowship paid to a NONRESIDENT ALIEN is subject to Federal income tax withholding at the rate of 30%, unless the payments are exempt from tax under the Internal Revenue Code or a tax treaty. However, payees who are temporarily present in the United States in F-1, J-1, M-1, Q-1, or Q-2 nonimmigrant status are subject to a reduced 14% withholding rate on the taxable portion of the grant because such individuals are considered to be engaged in a U.S. trade or business under Internal Revenue Code section 871(c).

more here: http://www.irs.gov/Individuals/Inter...Paid-to-Aliens

Re: Charged extra 30% taxes for scholarships I received
 

You need to talk to the school and tell them that you been living in this country longer than a green card holder from another country. Last semester, I had to talk to somebody from financial aid because they were going to tax me on my scholarships. Tell them your situation, explain to them what DACA is and mentioned how long you live in this country.

30% is a lot for a scholarship that you need towards your school, don't let them charge you taxes on it.

Re: Charged extra 30% taxes for scholarships I received
 

Merica' Welcome!

Re: Charged extra 30% taxes for scholarships I received
 

I think I am going to make an appointment to talk to the financial aid advisers once school starts. Thank you! Just out of curiosity, was your university a private or state institution?

Yes, but scholarships are nontaxable regularly. So that's why I am asking.

Re: Charged extra 30% taxes for scholarships I received
 

Not much help, but always read the fine print of anything affecting you. If you find out tax exemption is legal then fight it.

Re: Charged extra 30% taxes for scholarships I received
 

Public state university.

Re: Charged extra 30% taxes for scholarships I received
 

I just went to talk to the financial aid office at my University. They put my information into the tax computer, and for tax purposes, I am considered a resident alien, which means no scholarships are being withheld.

:)

I would suggest you guys try it talking to them if you have the same problems. Apparently, there are numerous students who are on DACA at my university.

Hopes this helps!