The Internal Revenue Service classifies grant aid in excess of tuition and mandatory fees as taxable income and requires Cornell to withhold 14% in taxes if you are a non-resident alien and not eligible for exemption from taxes under a tax treaty.
If this withholding creates a hardship, you may apply for loan to cover the withholding by completing the Undergraduate Student Loan Request Form. Include in Step 4 that you are an international student and want loan to cover your withholding tax.
You will receive a form 1042-S that shows the amount of grant aid in excess of tuition and fees. These are mailed out from Cornell University’s Tax Compliance Office. You may receive all or part of these taxes back when tax returns are filed for the calendar year.
In order to evaluate your eligibility for non-withholding, complete a Foreign National Questionnaire. Access to the on-line Questionnaire can be gained by emailing firstname.lastname@example.org requesting a user name and password.