Payment for winning a competition or being a top performer is not a scholarship or fellowship; instead, it is a prize or award, and is given without stipulation as to how it must be used. Prizes of this nature may be taxable to the recipient, but are not considered wages even if the student is employed by Snow College. If certain dollar thresholds are satisfied, the College will report the prize or award to the IRS and the student on IRS Form 1099-Misc, Miscellaneous Income or on IRS Form 1042-S, Foreign Person’s US Source Income Subject to Withholding.
FINANCIAL AID IMPLICATION NOTICE
Payments made by Snow College to students must be considered for financial aid implications,
as they comprise financial assistance given by the College to the student (NASFAA
Monograph 24, Appendix D). Please visit Badger Web to see your financial aid balance.
You may also contact the Financial Aid Office by email (financialaid@cjpk.net) or
by calling (435) 283-7129 to speak with a Financial Aid Counselor to understand the
implications that accepting this award may have on your financial aid.
TAX IMPLICATIONS FOR INTERNATIONAL STUDENTS
International Students are advised to meet with a tax specialist to determine their
tax status for income and or scholarship awards. The base requirements to be eligible
for any tax treaties are: F-1 visa holders (international students attending an academic
program or English Language Program at a US college) and have a social security number,
or taxpayer identification number. If a tax treaty is in place, the student will complete
U.S. Form 8233, Exemption from Withholding on Compensation for Independent Personal
Services of a Nonresident Alien Individual. The tax implications are different for
J-1 visa holders (exchange visitor program); otherwise, you may need to complete the
IRS Form 1042-S: http://www.irs.gov/uac/About- Form-1042S. Once again, please meet
with a tax specialist and they will help you determine which form applies to your
visa status.
As a competitor, you are responsible to protect any information concerning your idea that you share with advisors, team members, and fellow participants of the competition. Snow College takes no responsibility for unwanted disclosure in these instances.