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 report as income to the IRS scholarships or fellowships received that are in excess of qualified tuition and fees. Although the IRS requires Georgia Tech to annually report financial aid on Form 1098-t, it does not have a reporting mechanism that identifies taxable aid. The responsibility remains with you, the taxpayer/student for identifying and reporting taxable aid.

International Students

Federal tax withholding requirements differ for International students who do not have resident alien status. Where financial aid exceeds qualified tuition and fees, Georgia Tech is required to withhold 14% US income tax unless a tax treaty is in place between the US and the student’s tax country Georgia Tech is required to file IRS 1042-S annually. Form 1042-S reports taxable aid, and federal tax withheld.

To determine if you qualify for exemption or reducation of tax withholding based on a treaty, you should complete IRS form W-8BEN with the Bursar's Office. The Bursar's Office will review the treaty claim to determine proper application of tax withholding rules.

What Financial Aid is Taxable?

The Internal Revenue Service (IRS) considers some financial aid to be taxable 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 treatment of fellowships, scholarships, traineeships, grants, student loans, and student employees. 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.

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.