Florida Gulf Coast University is required to withhold U.S. income tax at the time a payment is made to a nonresident alien or to a third party on their behalf. The following types of payments can be subject to U.S. income tax: wages, salary or compensation, payments to independent contractors, scholarships and fellowships, stipends, book allowances, living expenses, honoraria for guest speaker fees, prizes, awards, royalties, commissions, travel reimbursements and interest payments.
In order to determine whether or not U.S. income tax is to be withheld from payments you might receive, the University requires all foreign nationals to complete its 'Foreign National Information Form' and provide documentation needed to calculate the tax on these payments. The amount of tax withholdings may be determined by tax treaties your country has with the US.
In general, the taxable portion of a scholarship or fellowship paid to a Nonresident Alien is subject to Federal income tax withholding at the rate of 30%, unless the payments are exempt from tax under the Internal Revenue Code or a tax treaty. However, payees who are temporarily present in the United States in F-1, J-1, M-1, Q-1, or Q-2 nonimmigrant status are subject to a reduced 14% withholding rate on the taxable portion of the grant because such individuals are considered to be engaged in a U.S. trade or business under Internal Revenue Code section 871(c).
In addition, the University must file annual 1042-S information returns with the Internal Revenue Service to report amounts paid and withheld for each type of payments. A copy of this form is sent to the payee and an electronic copy is submitted to the Internal Revenue Service. Section 6109 of the Internal Revenue Code requires that your SSN or ITIN be provided to associate and verify amounts reported to the IRS with corresponding amounts on your individual income tax return. Therefore, the University must provide your taxpayer identification number with this information.
If you do not have a valid Social Security number or Individual Taxpayer Identification number, you will need to apply for one from the appropriate government agency. Please note, Social Security numbers may, or may not, be permitted for certain foreign nationals, as outlined by the Social Security Administration office. However, if you do not qualify for a social security number, you should apply for an ITIN from the Internal Revenue Service. You may obtain both the forms and information at the following websites:
We appreciate your cooperation and assure you that this information will be used in accordance with Federal law.
Based on Social Security Number (SSN) legislation the Bursar's Office at Florida Gulf Coast University may still collect and use SSN's on a limited basis. Per F.S. 119.071(6)(b) SSN's can be supplied if it is necessary for the receiving agency to perform its duties or responsibilities. The FGCU Bursar's Office may use SSN's for the following activities: