Tax Estimator for International Students
Use this tool to estimate the amount of federal taxes owed at the end of the calendar year. Further instructions and examples follow the calculator below.
Instructions and Example
Select the country from which you are a citizen.
The calculator will access a table of treaties by country. If the United States has a treaty with the country selected, in this case Armenia, then all income is protected from taxation and the student will not have a tax bill at the end of the year for income derived from gift aid. Income from work may be taxed differently.
Estimated tax due on grants and scholarships = 0.00
If a student selects a country for which the United States does not have a tax treaty, then the student will be responsible for paying taxes to the federal government on any scholarships and grants they received for room and board.
One Term of Attendance in a Calendar Year—No Tax Treaty
In this example, the student attended one term (Fall ’17) during the 2017 calendar year.
- Select country of citizenship.
- Select only the Fall '17 toggle.
- Enter the total gift aid the student received from the college (noted on the financial aid award).
- Select DETERMINE TAXES.
The calculator will deduct the cost of tuition and fees for the Fall '17 term from the amount of gift aid the student received. The personal deduction of $4050 is then deducted from the remaining gift aid. 14% of that figure is the student’s estimated federal tax liability. That amount is displayed for the student below.
*The Business Office is in the process of determining if the College will hold the deduction or if the feds will hold the deduction so as to pay that amount of tax for the student at the end of the year with the1042-S.
Full-year Attendance in a Calendar Year—No Tax Treaty
In this example, the student attended both terms during the 2017 calendar year.
- The calculator will subtract $25,050 for the spring term AND $25,960 for the fall term.
- A total of $51,010 will be deducted from the student’s gift aid for the year.
- The personal deduction of $4,050 is then subtracted from the remaining gift aid.
- Any gift aid remaining is multiplied by 14%.
- This is the student’s estimated tax liability for the calendar year.
Note: In the above example, withholding $43 from each paycheck will equal (or come close) to the amount the feds would expect the student to pay when taxes are filed at the end of the year.
These are the steps happening behind the scenes
NOTE: This calculation has been prepared for you as a courtesy to help you plan ahead for federal and state tax filing at the end of the calendar year. This is only an estimate based on the tax treaty your country holds with the United States, the amount of aid you received, and the term(s) you attended in this calendar year. This is not a tax bill or in any way providing tax advice.