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Student Athletic Scholarship

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Process for Taxation of Payment for a Foreign National

Description

An Athletic Scholarship is a one-year renewable scholarship. The award may or may not be renewed for the following year based on academic standing and coach's recommendation. Students are expected to be members of an athletic team.

Taxation of Payment

The process described below shows the actions required before a foreign national, who is here on an athletic scholarship, can receive correct taxation of payment from the University Payroll Department.

Responsible People

Three people are involved in the taxation and reporting of Athletic Scholarships. Learn the action you should take:

  1. Student on Athletic Scholarship
  2. Director of Compliance for Athletics
  3. Foreign National Tax Specialist in the University Payroll Office
  1. Student Athlete

    1. Report to the Office of International Services with the following documents:
      • I-94 card
      • Passport
      • Department's offer letter
      • Form I-20
    2. E-mail the foreign national tax specialist at the University Payroll office to make an appointment to set up your tax withholding.
    3. Apply for an ITIN (individual taxpayer identification number). The foreign national tax specialist at the University Payroll office can help.
  2. Note: You are responsible for filing a federal and state income tax return each year. If you finish your assignment and leave the United States, you are still responsible for filing these income tax returns.

  3. Director of Compliance for Athletic Department

    1. E-mail the foreign national tax specialist each semester with a list of the taxable scholarship amount for each athlete.
    2. Remind the athlete to have their tax refund mailed to their name at the Athletic Department's compliance officer's NC State University address.
    3. Remind the athlete to cash their refund check from the IRS, and give the money to you as the University's Athletic Department's compliance officer to refund the payment of taxes to the IRS by the Athletic Department on behalf of the foreign national athletes.
  4. University Payroll Department's Foreign National Tax Specialist

    1. Meet with student-athlete to determine tax status.
    2. Determine and enter tax status in Windstar and the HR system.
    3. Make copies of the athletic student's I-94 card, passport photo page, passport expiration page (if not on photopage), department's offer letter, and Form I-20.
    4. Determine the 1042 payments for the athletic department and remit the payment on their behalf to the IRS.

 

Last Edited: December 3rd, 2010