U.S. Citizens and Permanent Residents (Green Card holders)
Most financial aid funds received from the College and from outside sources will be reported to the IRS (Form 1098-T: Tuition Statement). Students will receive Form 1098-T from the College in January; the form will show tuition billed (Box 2) and aid received (Box 5). Financial aid that exceeds tuition or that covers related costs (travel) must be reported as taxable income on the student’s tax return.
- For information on what is/is not taxable, see http://www.middlebury.edu/offices/business/tax/taxability/payment_students.
- For information on tax credits on educational expenses, see the IRS publication 970.
All international students attending Bread Loaf will be asked to submit visa history and passport information on a secure Middlebury website in May. The information is used only to determine the student’s tax status (non-resident alien or resident alien), not for immigration purposes. In addition, international students must submit tax forms for the Middlebury Tax Office when they register in the summer. For tax purposes:
- Resident aliens are taxed in the same way as U.S.citizens.
In the case of non-resident aliens, financial aid received from the College to cover room, board, and other school-related expenses will be reported by Middlebury on IRS Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding), which will be mailed to students in February following the summer term. These funds are taxed at a rate of 17.78% or 38.1% (these percentages include Vermont state taxes) unless treaty benefits apply.