Are scholarship or fellowship payments made to a foreign national subject to tax withholding? Yes. Withholding may be required on scholarship and fellowship payments made to foreign nationals unless the payment is a qualified...
Can a foreign national receive an honorarium payment? The answer depends on the supplier’s visa type. Federal law states foreign nationals who are B and VWB (Visa Waiver...
Can a J-1 visa holder be paid as a consultant or independent contractor? There is a contradiction in the law that allows a J-1 visa holder to be paid as an independent contractor....
Can a J-1 visa holder receive an honorarium payment? J-1 student visa holders cannot receive an honoraria payment. J-1 visa scholars or short-term scholars, sponsored by another university or...
Can an F-1 visa holder receive an honorarium payment? It would be highly unusual for an F-1 visa holder to be approved to receive an honorarium payment, as F-1...
Can an H-1B visa holder receive an honorarium or a stipend payment? No, H-1B visa holders cannot be paid for anything other than a travel reimbursement. An H-1B is a specific employment-related...
How is withholding tax calculated for foreign national payments? The following information applies to foreign nationals (nonresident aliens) for all income-type payments (honoraria, scholarship, fellowship, independent contractor, royalty, etc.)....
Is a non-qualified scholarship or fellowship for foreign nationals taxable? Yes. The non-qualified scholarship/fellowship income is taxable and self-reported. The student will not receive a Form 1099 and tax is...
What is a nonresident alien for tax purposes? A nonresident alien for tax purposes is a non-U.S. citizen who does not meet either the lawful permanent residence (”Green...
What is the tax rate for an honorarium paid to a nonresident alien? The default federal tax withholding rate for foreign nationals (non-resident aliens) is 30%. If the payment exceeds $1,500, an additional...
What qualifies as a non-taxable scholarship or fellowship for a foreign national? A scholarship payment received by a candidate for a degree is generally not included as taxable income, under Internal Revenue...