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By Darin Stone
Arizona Daily Wildcat
February 5, 1997

Global Center, students deem tax on int'l students to be unfair

Although international students are required to report all scholarship benefits to the Internal Revenue Service, the assistant director of the UA's Center for Global Student Programs and many UA students say the law is unfair.

David Currey said non-resident alien students have been obligated to report all income, including scholarships, since the requirement became federal law five years ago.

"In 1992, the IRS mandated this requirement," Currey said. "Income includes salary, scholarship and fellowship moneys from U.S. sources."

Currey said international students must report all funds dispersed by the university with the exception of tuition and registration fee waivers. The only students who may be exempt from tax payments are those with a tax treaty with the United States.

"If the student is from a country that has a tax treaty with the United States, the scholarship may not be subject to tax witholding depending on the treaty provisions," Currey said.

According to a Center for Global Student Programs news release, there are 27 nations which qualify for some kind of tax treaty.

Currey said the UA enrolled about 2,100 international students in 1996 who will be required to file tax returns this year. International students who began classes in January 1997 must file taxes in 1998.

The news release also said income tax liability is based on whether or not the student is a resident alien or non-resident alien. For example, a student may be considered a non-resident for immigration services and a resident for tax purposes.

Currey said the IRS' policy of taxing international students' educational resources is unfair.

"I'm certainly not in favor of regulations that tax the already limited resources of international students, particularly scholarships meant for purchasing books and basic living expenses," Currey said.

"I think the federal government should keep their hands off educational scholarship and fellowship money for any student, both domestic and international."

He said the annual expense for international students is estimated at $17,245. This includes tuition, room and board, books, fees, health insurance and other expenses. Educational costs for international students are increasing at 3 percent to 5 percent a nnually, Currey said.

Imran Chaudhary, business senior from Pakistan, said although he does not have a scholarship, he believes the tax is unfair.

"I wouldn't be happy if I had a scholarship, and it was taxed," he said.

Ezz-Eldin Mahran, economics graduate student from Egypt, said he sees the validity of the tax. However, he said he believes the United States often treats international students disrespectfully.

"The tax is fair because (international) students get their scholarship from the United States," Mahran said. "There is a conflict within the system though. We are not always treated like citizens, but we're taxed like citizens."

Currey said although the center cannot assist international students with tax filing, it can provide them with the proper tax forms.

"The CGSP can provide international students with the IRS Form 1001 that students from countries with tax treaties with the U.S. should complete and submit in order to be eligible for possible exemptions from tax witholding," Currey said.


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