Fee Remission/Fee Courtesy
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International employees who take advantage of fee remission (fee courtesy) for undergraduate courses will be taxed on this income if it exceeds the amount they are paying for qualified tuition and fees. If the employee is from a tax treaty country and has SSN/ITIN, this income may be exempt from federal and state withholding charges. To obtain this exemption, they must complete the International Tax Questionnaire. Send the questionnaire to the Tax Department, along with copies of the following:
- Visa
- Identification page of the passport
- I-94 Departure Card
- I-20 (F-1) or DS-2019(J-1)
- Copy of US social security card
FMS Payroll or the Tax Department will contact the student if they qualify for an exemption. The student must then sign Form W-8BEN, which is kept on file in the Tax Department.
IU will cease withholding if the Tax Department receives the signed Form W-8BEN, has a tax ID, and grants treaty benefits. It may also be possible for students to receive a refund of any withholding on their fellowship income retroactively to January 1st of the current year.
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