Prizes and Awards to Nonresidents

IRS regulations require that Nonresidents who are receiving a prize/award are subject to 30% federal withholding on the payment. Prizes/awards are amounts received by an individual primarily in recognition of religious, charitable, scientific, educational, artistic, literary or civic achievement or received as a result of entering a contest. Generally, tax treaty provisions are not available to exempt a prize/award from the 30% tax withholding. The individual will need to create a profile in GLACIER and they will receive a 1042S tax reporting form by March 15 of the next calendar year reflecting the amount award, taxes withheld, and amount netted. Nonresident Vanderbilt affiliated students and staff will complete a tax record in Sprintax Calculus once the International Tax Office is notified of their payment. Non-affiliated nonresidents will be paid via Candex in Payment Services.