As a Danish recipient of an award from The American-Scandinavian Foundation (ASF), you may or may not be obligated to pay U.S. taxes on your fellowship or grant. Your tax obligations will depend on a number of factors including whether or not you are a degree candidate, your visa status and what expenses your award will cover.
Below are the steps you need to take in order to determine what your U.S. tax obligations may be. All Danish fellows must complete Steps 1 through 3, and based on the information provided you will be directed to further steps depending on your individual circumstances.
Step 1: Obtain a U.S. Social Security Number or ITIN
Your first responsibility upon arriving in the U.S. is to apply for a U.S. Social Security Number or Individual Taxpayer Identification Number (ITIN).
Please note that this is not only necessary in order to complete the required U.S. tax forms, but it is often necessary in order to open a bank account in the U.S.
Step 2: Calculate your educational expenses
In order to determine your U.S. tax liability, you must calculate your educational expenses for each semester covered by your ASF award. This includes anticipated figures for the following:
Tuition and fees required for enrollment or attendance at an educational organization
Fees, books, supplies, and equipment required for courses of instruction at your educational institution.
Please note that personal living expenses such as rent, food costs, etc. cannot be considered as educational expenses.
Once you have calculated these expenses, you can determine your U.S. tax liability based on these figures and your personal circumstances.
Step 3:
Click on the category to which you belong for further instructions:
Candidate for Degree
Using the figures on your educational expenses statement, you are now ready to determine your tax liability, using the fill-in form below.
Please note that you must prepare a form for each semester covered by your ASF award.
If your award is $10,000 or less, it will be paid in one lump sum prior to your first semester or as soon as we receive your tax documents. In this case you only need to complete a form for that semester.
If your award is over $10,000, it will be disbursed in two payments: half in the beginning of your first semester, usually in August or September, and the second half before the beginning of your second semester, usually in January. In this case, you need to complete a form for each semester, filling in line 1 with half your ASF award total.
A signed copy of this form, including your Social Security Number or ITIN, along with a copy of your educational expenses calculation, must be mailed to the Fellowship Department at the ASF before award payment can be made.
Non-degree Candidate
This includes post-doctoral scholars, independent scholars, artists, etc.
As a non-degree candidate, you MUST pay U.S. taxes at the rate of 14% of your award total. Please prepare the form below to determine the tax amount that must be withheld from your award total.
A signed copy of this form, including your Social Security Number, must be mailed to the Fellowship Department at the ASF before award payment can be made.
Note:
If your award is $10,000 or less, it will be paid in one lump sum prior to your first semester or as soon as we receive your tax documents.
If your award is over $10,000, it will be disbursed in two payments: half in the beginning of your first semester, usually in August or September, and the second half before the beginning of your second semester, usually in December.
After Award Payment:
If your award is taxable:
If it is determined that your award will be taxed, you are required to file an annual tax form in the United States. Most fellows will be able to use Form 1040-NR entitled “U.S. Nonresident Aliens Income Tax Return.” (Note: be sure to read the directions carefully to ensure you are using the correct form for your personal circumstances.) If the ASF award is your only income subject to U.S. taxation, the return must be filed by April 15, 2024 for award money received during 2023.
If you were an employee and received wages subject to U.S. withholding, the return must be filed by April 15, 2024. By April 1, 2024, we will send you Form 1042-S, which indicates the amount of taxable income paid to you for the calendar year 2023. This is the amount you will report as taxable income on your Tax Return Form (1040-NR). See Form 1040-NR Instructions for complete details.
Remember that your Tax Return Form must be filled out, signed and dated and returned to the U.S. Internal Revenue Service (and not to the ASF)!
If your award is not taxable:
If no tax has been withheld from your award and you do not receive a Form 1042-S from the ASF, you have no filing obligations to the U.S. Internal Revenue Service.
For additional guidance in learning about your U.S. tax obligations, you may want to consult IRS on-line publication 519: “U.S. Tax Guide for Aliens” (Adobe PDF).
If you have any additional questions about the taxability of your award, please contact the ASF fellowships and grants department (grants@amscan.org).