Tax Information

The Office of Scholarships and Financial Aid (OSFA) understands that you may have questions concerning your tax liabilities associated with the funds you have received while a student at Georgia Tech. The information provided below is for general use only and may not cover all possible tax circumstances.

Who has tax liabilities?

Anyone who receives funds from any entity may have tax implications with regards to those funds received. In the case of students receiving scholarship or fellowship awards, the following information is being provided to help you understand the possible implications.

U.S. Citizens and Resident Aliens

United States citizens or Resident Aliens have an obligation to the U.S. government and the IRS to report any scholarships or fellowships received. The amount of tax liability is based in part upon the amount of qualified tuition and fees you incurred and your income level for that tax year. Georgia Tech is not responsible for filing any information to the IRS concerning these amounts. This responsibility remains with you, the taxpayer/student.

International Students

Georgia Tech is required to withhold 14 percent tax and file the corresponding IRS 1042-S form for all international students receiving scholarships or fellowships for any amounts greater than qualified tuition and fees allowable under the IRS code. The withholding requirement is waived in the case a valid tax treaty exists with the student's tax country.

To determine if you qualify for such a waiver, you should complete IRS form W-8BEN with the Bursar's Office. The Bursar's Office will confirm the existence of such a treaty the withholding requirement is waived and you will receive a 1042-S as required by IRS code.

What Financial Aid is Taxable?

The Internal Revenue Service (IRS) considers some forms of financial aid to be income.

Under current federal law, the amount of a student's total scholarships and/or fellowships that exceeds the cost of tuition, fees, books, supplies, and equipment is generally considered by the IRS to be taxable income. Federal Work-Study earnings are subject to federal, state, and local tax withholding. Students employed under the Federal Work-Study Program at Georgia Tech will receive a W-2 form documenting all earnings, and students must report those earnings as income on federal, state, and local tax returns.

Provisions of the Taxpayer Relief Act of 1997 offer many tax benefits to families investing in higher education. These benefits include the HOPE Scholarship Tax Credit, a Lifetime Learning Tax Credit, an interest deduction for student loan interest paid, new rules regarding withdrawals from education IRAs, and provisions related to employer-provided education assistance.

For additional information, families should visit the IRS website and contact their tax advisors.

Understanding Your Responsibilities

The Internal Revenue Code has provisions that address the tax status of fellowships, scholarships, traineeships, grants, student loans, and work recipients. The information provided on this web page is for general information only. Each recipient of funds is responsible for determining how the tax law applies to their particular circumstances.

Georgia Tech considers the payments for which you have been notified to be student financial aid and not payment for services. Therefore, you will not receive a W-2 form nor will you be covered by workers compensation insurance. If you believe these payments are for services rather than student aid, please immediately contact the Accounting Services Department at 404.894.4681 or 404.385.2736.

Calendar Year vs. Academic Year

Keep in mind that the IRS needs your calendar year information, where most of your awards occur across an academic year to include parts of two calendar years. Georgia Tech's academic calendar runs from August – July as opposed to the IRS calendar year, which runs from January – December.

Tax Information Tools

The Georgia Tech community can offer you the following information concerning your student/employee account; however, no entity at Georgia Tech is authorized to give tax advice to students.

Follow these steps to access your award notifications from the OSFA by semester:

  1. Login to OSCAR

  2. Select Student Services & Financial Aid

  3. Select Financial Aid

  4. Select My Award Letter

Your tax credit information for the previous calendar year is available by January 31 each year. Use the information on your 1098-T statement for tax credit information.

Visit the Burar's Office website for instructions on how to access your 1098-T statement.

Follow these steps to access your student payroll information:

  1. Login to OSCAR

  2. Select Employee Resources

  3. Select TechWorks and login

  4. Select Payroll Compensation Home

  5. Select W-4 Information to Review/Edit Withholding Options

  6. Select Print W-2

Visit the OHR website for more payroll information.