Tax Exemption

1.     Citizens of Tax Treaty Country

Students who are citizens of a country that has a tax treaty with the United States are exempt from the tax on their excess aid.

In order to claim this exemption, the student must complete Form W-8BEN. Form W-8BEN is a certificate that establishes foreign status to determine exemption from the taxes on United States based financial aid.

For some countries, a student's eligibility to qualify for this exemption terminates after living in the United States for a specified time. Students whose country of citizenship does not have a tax treaty with the United States, or whose treaty eligibility has ended, are taxed 14% on the amount of their aid that exceeds their tuition and fees.

If you are eligible to claim tax exemption:

  1. Complete Form W-8BEN
  2. Submit Form W-8BEN to:

  Penn State
 Office of the Bursar
 Attn: International Taxes
103 Shields Building
664 Curtin Road
University Park, PA 16802

2.     U.S. Resident for Tax Paying Purposes

If you are from a country that does not have a tax treaty with the United States, or if your eligibility to claim a tax treaty has ended, you may still be exempt from the international taxes if you qualify as a United States resident for tax paying purposes.

In order to qualify as a resident for tax paying purposes, you must be a student who is on an F-1 or J-1 visa and have been present in the United States for 5 years and have passed the Substantial Presence Test.

If you feel that you are in this category, please complete Form W-9. The worksheet attached to Form W-9 will also help you to determine if you truly are a resident for tax purposes.

If you qualify as a United States resident for tax paying purposes:

  1. Complete Form W-9  - Customized for International Taxes purpose
  2. Submit Form W-9 to:

 Penn State
 Office of the Bursar
 Attn: International Taxes
103 Shields Building
664 Curtin Road
University Park, PA 16802

Additional Information Regarding Form W-9: IRS website