International students and U.S. taxes

Financial Aid from Yale may have tax implications for international students as determined by the Internal Revenue Service (IRS) of the United States.  

  • International students whose country does not have a tax treaty with the United States will be assessed 14% tax on any Yale financial aid in excess of tuition.  We refer to this as Federal Tax Withholding and it is charged to your student YalePay account each semester.
  • If your country has a tax treaty with the U.S., you may not be subject to the federal tax withholding  charge once you visit the Yale International Tax Office and complete the Foreign National Information System (FNIS) application.
  • Students who come from countries that do not have a tax treaty will have their tax charge covered in their first and last terms of enrollment at Yale.
  • Students are required to pay their tax withholding charge for the intervening terms.  Students will be required to file a U.S. 1040-NR tax return and forward a copy to the Office of Undergraduate Financial Aid.  The actual tax reimbursement will be determined by reviewing the student tax return.  The tax scholarship will only cover taxes on financial aid, not wages or taxes for any other purpose.