To claim an exemption from withholding on your U.S. income under an income tax treaty, you must submit a withholding certificate (that includes a TIN) to the payer prior to payment.
If you are a nonresident alien (F, J, M, or Q status) with tax-exempt income from employment, self-employment, or scholarships and fellowships, you must present a withholding certificate (Form 8233 or Form W-8BEN).
You can apply for an ITIN before submitting a federal tax return if you are claiming treaty benefits from taxes on scholarship and fellowship grants and taxes on honorarium payments.
Claim a treaty exemption on income from scholarship or fellowship grants
Use this sample to fill out and submit evidence of treaty exemption, including a copy of Form W-8BEN or Form 8233 submitted to the University Foreign National Tax Consultant and an official notification from the University awarding the scholarship or fellowship.
Not claiming a treaty exemption on income from scholarship or fellowship grant
Use this sample when you fill out your form, and submit a letter from the Designated School Official (DSO) or Responsible Officer (RO) (contact International Studies Office) on official letterhead stating that you are receiving income from scholarships or fellowships subject to tax withholding and information reporting requirements and a letter from the department at UVA awarding the grant.
Under Exception #2, grant recipients with F, J, M or Q immigration status who are not employed by UVA are not required to first apply for an SSN. However, they must submit a letter from the University DSO or RO stating that they will not be securing employment in the U.S. or receiving income from personal services.
Claim a treaty exemption on an honorarium payment
Use this sample when you fill out your form, and submit a copy of the completed Form 8233, a letter referencing the payment from an authorized official of the department making the payment, and a communication from a University department requesting your presence for the speaking engagement.
If you are from a non-treaty country and cannot claim an exemption from taxes on an honorarium payment, we will withhold 30 percent from the gross amount and process the payment. You cannot submit Form W-7 until you file your year-end tax return.