Frequently Asked Questions:

What is the "International Tax" charge on my student account? International students who receive scholarships from sources within the United States have taxable income. Students may or may not owe taxes on that income. Often, tax treaties are in place that make students exempt from withholding taxes. If you received a bill labeled "international Tax" from Mercer One, then you are not exempt from withholding tax on scholarship income. (Income Code 15)

Why was I charged so much more in taxes than my friend who got the same scholarship?

The Internal Revenue Service offers a reduced withholding or "Alternate Withholding Procedure" to international students who are not exempt by treaty. Your friend may have taken advantage of this offer.  Also, your friend may be from a country which has a tax treaty with the United States that exempts a portion (or all) of his taxable income from scholarships.

Do I qualify for Reduced Withholding? If you are present in the United States on a student Visa (F or J) and you have a have a social security number or a ITIN , you are eligible to submit a specially prepared W4 (W4NR) to our office. For more information on the "Alternate Withholding Procedure" search the IRS website at IRS.gov or use this link  http://www.irs.gov/businesses/small/international/article/0,,id=106255,00.html

Why does Mercer charge this tax and my other school did not? This is not a requirement by Mercer University but rather, a requirement by the Internal Revenue Service. We can not speculate on why another school may not have followed regulations. I will share, however, that many times this question has been presented to me, the school in question followed the law, but the student did not receive the same level of scholarship funding. Income amounts completely change tax requirements as tax is based on a percentage of taxable income.

Do I have to do a tax return? If you have taxable income you are required to complete a tax return even if you do not owe any tax.

What am I supposed to do with the 1042-S form I received? Save it to use when you file your tax return. Every establishment who disbursed money to you, whether it was scholarships, fellowships, or earned wage income, is required to send both you and the IRS a statement of that taxable income. If you had a job and did not claim treaty exemption, you will be issued a W2 form (a statement of taxable earnings). If you received scholarships or fellowships in excess of qualified tuition and fees, you will be issued a 1042-S form. If you worked independently, or received interest income from a company in