- You are an F-1 or J-1 student with a scholarship or fellowship stipend
- You do not have a campus job or work authorization
- Your school withholds tax on the non-tuition part of your award
The situation
“My department said I needed a tax number but the SSA said I couldn’t have one. This was the missing step.”
Lin started a PhD in chemistry at a Midwestern university in fall 2024. Her fellowship covered tuition and paid a $24,000 annual stipend for living costs, with no teaching or research duties.
The tuition portion is not taxable, but the stipend is. The university withheld 14% and asked her for a taxpayer number. The Social Security office told her she was not eligible for an SSN without authorized employment.
Application path
- W-7 reason
- Reason f — nonresident alien student, professor or researcher
- Exception
- Exception 2(c) — scholarships and fellowships, no treaty benefit claimed
- Filed with
- No tax return required under the exception
The China–U.S. treaty’s student article covers payments from abroad, not a U.S. fellowship, so no treaty benefit applied. Exception 2(c) lets a student apply before filing, with a letter from the school.
Documents
- Valid Chinese passport with F-1 visa
- Form I-20 and I-94
- Fellowship award letter showing the stipend amount
- Letter from the university’s designated school official confirming enrollment, the award and that she has no employment
- Form W-7 with Reason f and “Exception 2(c)” written on line h
- Form W-7 (COA) Certificate of Accuracy
- Form 1040-NR for 2024, filed after the ITIN arrived
Timeline
- Day 1Review of award letter and visa documents.
- Day 6Letter received from the international student office.
- Day 7Video interview; W-7 mailed.
- Week 8ITIN issued.
- Week 9ITIN given to the payroll office; 2024 Form 1040-NR filed.
Issues we solved
The first letter from the university was a generic enrollment letter that did not mention the fellowship.
Exception 2(c) needs the school to confirm the scholarship or fellowship. We sent the international office the IRS’s required wording and they reissued it on letterhead.
Lin planned to start a paid research assistantship the next year.
Once she has authorized employment she must apply for an SSN. We explained how to notify the IRS so her ITIN records move to the SSN.
The numbers
| Taxable stipend | $24,000 |
| Withheld at 14% | $3,360 |
| Tax at graduated rates | $2,648 |
| Refund | $712 |
Tuition covered by the fellowship is not taxable. Students from China do not get a standard deduction.
Outcome
The ITIN arrived in eight weeks. Lin gave it to the payroll office and filed her 2024 1040-NR, which produced a $712 refund.
Her spouse did not apply. A spouse of a nonresident student generally cannot be claimed for a tax benefit, so an F-2 ITIN would have been rejected.
Questions people in this situation ask
No. With authorized employment you are eligible for an SSN and must apply for one.
Usually not. Since 2018, a spouse or dependent of a nonresident can get an ITIN only for an allowable tax benefit, which most F-2 spouses do not have.
Yes, if you receive a taxable stipend. Every F-1 student also files Form 8843, even with no income.
IRS sources
- Instructions for Form W-7 (Rev. December 2024)
- Publication 519 — U.S. Tax Guide for Aliens
- Publication 515 — Withholding of Tax on Nonresident Aliens
This is a representative case. Names and personal details are illustrative; the IRS rules, forms and calculations reflect tax year 2024. It is general information, not tax advice for your situation.