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Each year, in mid-April, residents and citizens of the United States are required to submit their annual income tax returns for the calendar year prior. As resident aliens of the United States, Fulbrighters are also required to participate in this annual ritual. We ask that Fulbrighters approach this piece of their exchange with a good faith effort. As tax information can be overwhelming and confusing, this information below attempts to simplify the ways in which Fulbrighter grant benefits can be subject to taxes. It also aims to orient Fulbrighters to the most common Fulbrighter tax profiles so that you may understand better how U.S. tax law may apply to you. Your IIE advisor, while not certified to give tax advice, can help you understand the components of this guide. For more complex tax matters, Fulbrighters should consult the IRS website (irs.gov) and/or a tax professional. Ultimately, compliance with tax laws and regulations is your responsibility. Keeping good financial records all year long will make completing and filing your tax return easier.
- Do I really have to file tax paperwork? My country has a tax treaty and I didn't even receive any payments!
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- In ALL cases, regardless of whether or not taxes are actually owed, and whether or not your country has a tax treaty with the United States, Fulbrighters must file tax paperwork and/or a tax return to be in compliance with U.S. tax law. The tax team at IIE will provide guidance on what type of tax filing you'll need to complete based exclusively on your Fulbright income. If you have other income from a U.S. source that is not through IIE, it is strongly recommended that you consult a tax professional to complete your return.
- Given the U.S. academic calendar runs August through May, many Fulbrighters will need to file tax paperwork for TWO tax years. For example, if your exchange begins in August 2021 and runs through May 2022, you will have to file U.S. tax returns for both 2021 (in April 2022) and 2022 (in April 2023).
- Only you know about the full picture of your income; make sure to consult a tax professional if you are unsure about anything. IIE can only advise about Fulbright-related income.
- Will I owe taxes?
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The Fulbright Program sponsor, the United States Department of State, pre-pays federal taxes on Fulbrighter’s behalves. Therefore, a Fulbrighter should never owe federal taxes as a result of their direct Fulbright income from the U.S. Department of State/IIE. However, a Fulbrighter may be required to pay state taxes on their Fulbright income, and/or Fulbrighters may owe taxes on income earned from a non-Fulbright source, such as their host institution or similar.
- How can I make tax time easier?
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Your Fulbright advisor will prompt you for information and/or encourage you to carry out tax-related tasks before, during, and after your program to ensure your tax burden is easier to meet. They include:
- Report your Foreign Tax ID Number (This is a number from your home country and it helps us apply any tax treaties that may be applicable to your payments). You will be prompted for this information shortly after you receive your DS-2019.
- Submit your W-8 BEN Form (This short form is required by the IRS for IIE to have on file and is collected with your other arrival documentation).
- Apply for and report your SSN/ITIN to IIE: Immediately after arrival, you will be supplied with a letter in support of your application to receive a Social Security Number (SSN)/International Tax ID Number (ITIN). We encourage ALL Visiting Scholars to obtain an SSN or ITIN as they are valid for your lifetime, are required by law to appear on your tax returns. Having this number ahead of time will make filing your tax paperwork each year MUCH easier. Take note: If you receive any grant benefits (these benefits may be paid on your behalf and not seem to you like income) and didn’t obtain your SSN or ITIN while in the U.S., you’ll have to apply for an ITIN anyway at tax time. Applying for this Tax ID number from your home country is very inconvenient.
- What types of income are taxable?
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The following sources of taxable income are typically experienced by Fulbright Visiting Scholars.
- Fulbright stipend paid directly by IIE (U.S.-sourced)
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Participation in Fulbright Enrichment Seminars and Anchor Cities programming incur taxable grant benefits paid for by IIE on the Fulbrighter’s behalf.
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Receipt of an Outreach Lecturing Fund Travel Award
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Compensation received separately from a Fulbrighter’s host institution in the United States or honoraria received for a guest lecture at another institution/organization during your Fulbright (such activities must be pre-approved by Fulbright, and they do carry tax liability)
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Other types of income are less common; only you know all of your U.S. sources of income during your grant period and it is your individual responsibility to report such income on your U.S. tax returns.
- How do I know what taxable income I received in each tax year?
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In late February/early March, IIE will send you the instructions and guidelines you will need to file the appropriate paperwork for your U.S.-sourced Fulbright-related grant benefits. Similarly, early in each calendar year, other institutions you may have received payments from in the previous year (host institution, etc.) will send you tax information separately, typically via U.S. mail. If you are uncertain, contact the source of your payments.
- I had no US income last year. Do I need to file a return?
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If you did not receive any U.S. scholarship or U.S. employment income, you are ONLY required to complete Form 8843-(Statement for Exempt Individuals and Individuals with a Medical Condition). This form must be filed in order to maintain your exempt status from U.S. residency for tax purposes as a J-1 or F-1 visa holder. It is usually attached to your income tax return (Form 1040NR).
- What Tax forms will I need to fill out?
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IRS Form 8843: All Fulbright Scholars, regardless of income (U.S. or foreign source), must file Form 8843 for each tax year during which they were resident in the United States for even 1 day. This one-page form establishes presence in the United States as a non - resident alien and is required. In the case that a Fulbrighter received $0 U.S.-sourced income this will be the only form required.
IRS Form 1040NR: Scholars who received US income during their exchange will need to fill out this form. For Fulbright Visiting Scholars, there are typically three profiles:
- Scholars who receive their stipend income directly from IIE are provided with tax filing assistance through Sprintax. Sprintax is an online US tax preparation system for international students and scholars. You will be prompted by IIE/Sprintax at various points before, during, and after your program to provide information in service of your tax preparation and compliance. At tax filing time, Sprintax will guide you through the 1040NR tax return process and assist you with preparing compliant Federal and State tax returns. It is your responsibility to print and mail your tax returns to the U.S. International Revenue Service (IRS).
- Scholars paid by Fulbright Offices in their home country but who accepted U.S.-sourced grant benefits from Fulbright (enrichment or OLF travel awards): IIE will inform any Fulbrighter who falls into this category that they received such benefits and instruct them at the appropriate time that they will need to file form 1040NR in addition to form 8843. IIE/CIES has also developed some limited resources to help with filing taxes on one’s own. Scholars in this group may also choose to receive filing assistance through Sprintax at their own, modest cost.
- Scholars who receive non-Fulbright income from a U.S. source: Fulbrighters should obtain information about their tax obligations directly from the entity that paid them the funds.
- I received U.S. sourced income from both Fulbright and non-Fulbright sources. Should I file two returns?
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No. You need only file one return that accounts for all of your U.S. sourced income. If you are utilizing Sprintax services, Sprintax will file a return that includes your IIE and non-IIE income.
- What should I do if I receive notifications from federal or state tax authorities or collection agency?
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If you received payments from IIE and are eligible for Sprintax services, please contact IIE@sprintax.com immediately. Be sure to include a copy of the notice. If you received your payments from a Fulbright Commission in your home country, please reach out to the IRS for clarification. You can also use Sprintax services, but it will likely cost a small fee.
- Is this email I received about taxes spam or a scam?
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- Throughout the tax season, you may receive important messages from Fulbright/IIE via Mailchimp or other email services, fulbrightvisitingscholar@iie.org, tax@iie.org, and noreply@sprintax.com. Please make sure these are on your No Block/Non-Spam lists.
- You will never be asked to provide a Social Security Number via telephone by the Internal Revenue Service (IRS). The IRS will not call you. You should always be careful to keep private any personally identifiable information (PII) (e.g., Social Security Numbers/ITINs, personal addresses, credit/debit card information, passport/visa information, et cetera). If you receive a threatening phone call where the caller is requesting urgent action from you or something bad will happen, you can ask them for their contact information and let them know you will look into the matter and call them back.
- Sprintax Tax Preparation
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If you receive your stipend payments directly from IIE, you will be offered Sprintax tax service free of charge. Other scholars whose stipends are paid by Commissions overseas may opt into Sprintax for a fee and will be provided with a discount code and should pay their fees directly.
For scholars receiving Sprintax service through the program, you will access the Sprintax Tax Preparation system after receiving instructions on how to create an account. This is separate from the Sprintax TDS Profile. If you received an email stating you are required to create a Sprintax TDS Profile, you should NOT proceed to using Sprintax Tax Preparation until you receive notification that your Form 1042-S is ready (typically sent in March). If you received an email instructing you to proceed to creating an account with Sprintax Tax Preparation, please see the below FAQs to help you through the process.
Please review Sprintax’s general FAQs here: https://www.sprintax.com/faq.html
- Guidance for filling out form 8843
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First, obtain Form 8843:
Download the PDF from the IRS website Next, do one of the following:
Fill out the form* on your computer using Adobe Acrobat and print
Print the form and fill it out* very clearly using a black pen
When filling out the form, use the instructions below to determine which sections you must fill out and which you can leave blank.
Download this sample 8843 as a reference, noting that your personal information and dates will differ!
Top Portion
Answer each question. Here are tips to help clarify some of the questions:
Name: Write your Name as it appears in your Passport
Your U.S. Taxpayer Identification Number, if any. If you have an SSN (Social Security Number) or ITIN (Individiual Tax Identification Number), you can write it in this box. However, you may leave blank if you do not have either of them.
Enter your Home Country and U.S. Addresses
Part I: General Information
Answer each question. Here are tips to help clarify some of the questions:
Line 1a: Write your visa status for your most recent entry the U.S. and the date of entry
Line 1b: Write your current nonimmigrant visa status (mostly the same as line 1a)
Line 4a: Write the actual number of days you were physically present in the U.S. for the years indicated
Line 4b: Write the same number of days you wrote in 4a for 2022.
Part II: Teachers and Trainees
Fulbright Visiting Scholars fall into the Teachers and Trainees category. Answer each question. Here are tips to help clarify some of the questions:
Line 5: Write in information for your primary host institution during your Fulbright Exchange
Line 7: Write your visa status only for the years you were present in the U.S. Otherwise leave blank.
Part III: Students
Skip this section.
Part IV: Professional Athletes
Skip this section.
Part V: Individuals With a Medical Condition or Medical Problem
Skip this section.
Bottom Portion
Sign and date on the last line of page 2.
Final Step:
Make a copy of the completed form and save it for your records Mail the form to the IRS using the information at the bottom of this page. We recommend that you choose tracking and receipt confirmation when you mail as the receipt conformation will be your only form of proof that you have mailed Form 8843. IRS will not send you any confirmation of receipt.
- Additional Resources
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Webinar: Demystifying U.S. Taxes