Taxability of Scholarships and Grants Disclosure
Lindenwood University currently applies institution granted scholarships/grants to student accounts in the following order: 1) tuition, 2) fees, 3) books, 4) room, and 5) board. If a student receives scholarships during the calendar year that exceed the cost of tuition, fees, books, supplies, and equipment, the amount that exceeds those costs should be reported by the student as taxable income. The university is required to send information to students and the Internal Revenue Service (IRS) about the student’s payments toward tuition charges, grants, and scholarships on Form 1098T. Students are responsible for using this information as well as their own records to complete their tax returns.
Non-U.S. citizens and non-permanent resident aliens may be subject to U.S. taxation. The university uses Sprintax to gather required information about international students in order to facilitate the tax-withholding determination. Any portion of institution granted scholarships/grants that exceed the cost of tuition, fees, books, supplies, and equipment may be subject to a taxation rate of up to 14 percent for students who have an F, M, J, or Q visa, while all other visa types may be subject to a taxation rate of up to 30 percent. Non-U.S. citizens and non-permanent resident aliens may contact the non-resident employee compliance specialist at (636) 219-1273 to discuss questions about Sprintax or taxation.