Form 1042-S for International Students
Form 1042-S is issued to international students classified as nonresident aliens for tax purposes who have received scholarships that exceed their tuition and required fees during the calendar year (January 1 through December 31). International students whose scholarships do not exceed these expenses will not receive this form. In fact, most international students will NOT receive a form.
To comply with U.S. income tax regulations, SCU is partnering with Sprintax Calculus to assess tax treaty eligibility, determine residency status, and generate any necessary tax-related documents for 1042-S purposes.
Once SCU has registered you in the system, you will receive an email from noreply@sprintax.com with the subject “First Name – Welcome to Sprintax Calculus.”
If you do not activate your account within 24 hours of receiving the email, you can request a new activation link by selecting the “forgot password” option. Please ensure your Sprintax profile is completed as soon as possible, as you will not be able to take advantage of any tax treaty benefits until your profile is finalized and your tax forms are signed.
The 1042-S form will be provided to students by March 15th of each calendar year.
Important Note: Santa Clara University staff is unable to provide tax advice to individuals per University policy.
How much tax will I be charged?
If you are a nonresident alien for tax purposes with an F-1, J-1, M, or Q visa, the taxable portion of your scholarship will be taxed at a rate of 14%. For all other nonresident aliens, the tax rate is 30% of the taxable portion.
Some international students may be from countries with tax treaties with the U.S., allowing them to claim an exemption from U.S. taxes. If you receive taxable scholarships, Sprintax will send you an email prompting you to complete a questionnaire to determine your eligibility for a tax treaty. While a tax treaty may exempt your scholarship from tax withholding, we are still required to provide you with a 1042-S form and you may still be required to file an income tax return. We recommend consulting a tax professional.
If you are not eligible for a tax treaty, SCU will assess a charge on your student account for the 14% or 30% withholding tax starting March 31, 2025, for the Winter Quarter 2025/Spring 2025 Semester. We will continue to add this charge to your account at the beginning of each term if you receive any taxable scholarships.
Which countries have a tax treaty with the United States?
You can find a list of treaty countries in IRS Publication 901. Keep in mind that tax treaties vary by country. To be eligible to claim a tax treaty exemption, you must have a US TIN number.
How is the taxable amount of my award calculated?
The total scholarships and grants you receive during the calendar year will be reduced by the total amount of tuition and required fees. The remaining amount is considered taxable. In general, scholarships and grants used for room and board, living expenses, and travel are not tax-free.
Calculation Example – Per Calendar Year
- Total Scholarship: $80,000
- Cost of Book Allowance: $549*
- Cost of Health Insurance: $3,180**
- Cost of Tuition: $59,707
- Total Qualified Scholarship: $549 + $3,180 + $59,707 = $63,436
- Total Unqualified Scholarship (Taxable Amount): $80,000 - $63,436 = $16,564
- Tax Liability:
- 14%: $16,564 x 0.14 = $2,318.96
- 30%: $16,564 x 0.30 = $4,969.20
*The book allowance is set by the California Student Aid Commission for AY 2024-2025 as we are unable to determine the exact costs of books per student.
**This is only included if you have been charged this fee and have not waived it.
Why have I never been charged for this tax before?
In the past, only a small number of international students received aid that exceeded tuition and mandatory fees, so SCU and departments covered these taxes on behalf of students. However, as the number of international students receiving aid surpassing nontaxable expenses has increased, we can no longer continue covering these taxes while also awarding student’s aid.
Can my department cover the scholarship tax?
If a department would like to cover the scholarship tax they can use the “gross-up” method to award the student additional aid. This method allows the student to receive the full, pre-tax amount after withholding. The grossed-up amount will be higher than the intended scholarship amount due to the tax being deducted from the total award.
The grossed-up amount is calculated as follows:
- Scholarship Amount / 1 - Withholding Tax Rate
- Ex: A student is awarded a $5,000 award subject to 14% withholding tax
- $5,000 / 1 - 0.14 = $5,814 (rounded to the nearest dollar)
- The department would award the student $5,814 to allow the student to receive the full $5,000 and cover the $814 withholding tax
Should I register with Sprintax Calculus without an invite from SCU?
As most non-resident students will not receive a 1042-S form, we ask that only those who receive an email invitation from SCU create an account.
What documents will I need to complete my Sprintax Questionnaire?
Please have the following information available:
- Passport and visa information
- U.S. entry and exit dates for any current and previous visits
- Your Social Security Number (SSN) or Individual Tax Identification Number (ITIN) if you have one
- Most recent I-94
- I-20 or DS-19
What happens if I don’t register with Sprintax Calculus or complete the questionnaire?
If you do not provide the required information or complete the necessary forms, we will be required to withhold taxes for students who might otherwise be eligible for a tax treaty. Additionally, failure to complete the registration or questionnaire may prevent future scholarship disbursements.
Is Sprintax Calculus the same as Sprintax Returns?
No. Sprintax Calculus is a tax determination software that SCU is utilizing with the purpose of determining appropriate tax withholding and tax treaty eligibility (if applicable). Sprintax Returns is a tax preparation software that assists with annual income tax preparation and tax filing. For additional tax resources please click here.
I received my 1042-S form. What do I do now?
All non-residents who receive income (even if it’s only from scholarships) are required to file a tax return. For more information regarding taxes and deadlines, please click here.