On a Sports Scholarship in the U.S.? Here’s What International Students Need to Know About Taxes
🏅 Dreaming Big — Studying and Competing in the U.S.
If you’ve earned a sports scholarship to study in the U.S., congratulations — that’s a huge achievement!
However, before you hit the field or court, it’s important to understand that your scholarship may have tax implications. Even if you receive only a small amount, you may still need to file a U.S. tax return.
Let’s break down what international student-athletes should know.
💰 Are Athletic Scholarships Taxable?
If you’re in the U.S. on a sports scholarship, you’re likely classified as a nonresident alien for tax purposes — and yes, you’re legally required to file a federal tax return, even if your taxable income is minimal.
You may also need to file a state tax return, depending on where your university is located.
Failure to file your taxes could affect your visa status and your eligibility to stay or return to the U.S.
🏈 When Is a Sports Scholarship Tax-Free?
It depends on how the scholarship funds are used.
✅ Tax-free:
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Tuition
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Required fees
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Books and equipment related to your studies
💸 Taxable:
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Room and board
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Meals
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Travel costs
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Personal expenses
Example:
If your scholarship covers $20,000 — with $15,000 for tuition and $5,000 for housing — only the $15,000 portion is tax-free.
💡 Tip: Some countries have tax treaties with the U.S. that can reduce or eliminate the tax you owe on scholarship income.
🧾 How to Report Scholarships on Your Tax Return
You’ll need Form 1042-S, which your university’s payroll office will issue if any part of your scholarship is taxable.
You must include this form when filing your U.S. tax return.
📄 Which Forms Do You Need to File?
Depending on your situation:
1️⃣ No income during the year → File Form 8843
2️⃣ Received scholarship or work income → File Form 1040-NR + Form 8843
3️⃣ Possible state tax return → Depends on your state of residence
🌍 Determining Your Residency Status
Most international students on F, J, M, or Q visas are considered nonresidents for tax purposes during their first five years in the U.S.
Residency determines which forms you file and how your income is taxed.
🧳 Documents You’ll Need
Before filing, gather:
📘 Passport
📄 Visa and immigration forms (I-20 or DS-2019)
💰 Income forms (W-2, 1042-S, or 1099)
🔢 SSN or ITIN
🧾 Copy of last year’s tax return (if applicable)
If you don’t have an ITIN, J1 Summer Tax Back can help you apply for one.
⏰ When to Start Preparing Your Tax Return
Don’t wait until the last minute! The tax filing deadline is April 15, 2025.
Start gathering your documents early to ensure a smooth and accurate filing process.
🧮 Who Can Help You File Your Taxes?
Filing taxes as an international athlete can be confusing — but J1 Summer Tax Back makes it simple.
We help nonresident students:
✅ Prepare accurate and compliant tax returns
✅ Claim treaty benefits to reduce tax liability
✅ File 100% online from anywhere in the world
📂 Stay compliant. Stay confident.
With J1 Summer Tax Back, your U.S. tax return is in safe hands.