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- Foreign nationals who are resident aliens are taxed on worldwide
income in the same manner as U.S. citizens so the source of their income
is not relevant.
- Nonresident aliens are taxed only on U.S.-source income and income
connected to a U.S. trade or business. Therefore, nonresident aliens are
not taxed on foreign-source scholarship and fellowship grants.
- A scholarship or fellowship grant is foreign-sourced if the grantor
is a foreign resident, a foreign government, international organization,
international organization, or if the grantor is a U.S. resident but
the educational activity takes place outside the U.S