Funding and Taxes as an International student in America

[TakeruK]

Here is more information on claiming exemption or a reduced withholding rate, and a page I came across for Canadian workers -- there certainly is a Canada-US tax treaty, but I can't find any info for Canadian students specifically and what the reduction/exemption would look like if we file the W8BEN.

Nice! I had to fill out a W8BEN for 2 out of the 3 schools I visited to get the reimbursement. My friend said that although he would have owed about $2200 in taxes, he got all but ~$300 back. He said that the treaty is for federal taxes only (so he still had to pay state tax -- he's in California). But I don't know if the approximate number he gave was federal+state or just federal.

(Also it's great that your letter spells out the tax amount so clearly...I wish mine did too so I can budget accordingly But if it's 14% across the board like your letter says then that's helpful info too.)

[ANDS!]

Oh, wow. That's terrible. I don't know how they expect students to figure all of this out by themselves without help from more than just some program. At least the chances of the IRS going after an international student are pretty small - and, as I found out recently, many don't even file taxes because they don't think they have to - but still, what a headache.

Probably not meant to do it on your own, but go to HR BLOCK (which often offers free preparation/filing) or something. There is also very often free tax preparing for certain types of filers; I'd keep an eye out for such services offered at a local career center.