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1042-S | Business Office

IRS Form 1042-S

Wabash College will issue an IRS Form 1042-S to international students who have taxable income from scholarships.  International students without taxable income from scholarships will not receive an IRS Form 1042-S.  Most international students will NOT receive an IRS Form 1042-S.

Scholarships paid from a U.S. source (eg. Wabash) may be taxable to the student.  When the total award received by the student is greater than the required tuition, fees and books - Qualified Expenses as defined by the Internal Revenue Service (IRS) - the balance is taxable to the student - unless a tax treaty exists between the student's home country and the United States.  

Tax Withholding Calculation in Wabash College Tuition Invoice

Tax law requires Wabash College to withhold from any individual with an F, J, M or Q visa.  The tax rate applied is 14% federal income tax from the taxable balance (as defined above).  Wabash College uses the following procedure to determine the amounts subject to withholding:

  • Add up all awards based on U.S. (including Wabash) funds.  Result is the Total Award.
  • Add up tuition and mandatory fees paid along with a book allowance of $500 per semester.  The result is the total Qualified Expenses.
  • Subtract total Qualified Expenses from Total Award.  Any positive difference is considered taxable income and is subject to tax.

The tax withholding charges are posted to the Wabash College tuition invoice at the beginning of each semester.  Any change in scholarship or Qualified Expenses paid throughout the year may result in an increase or decrease in the taxes withheld.

If there are no tax withholding charges posted to the Wabash College tuition invoice, no IRS Form 1042-S will be issued since taxable income from scholarships was calculated as zero.