Question: Do international students have to pay taxes on financial aid from universities in the US? My cousin has received a US$40 000 financial aid from her university in Maine, US.  Will she have to pay taxes on that?  If yes, how much?  Please include references.  Thx.

Answer: Yes. However, the amount of tax depends on which country that you comes from (some countries may have tax treaty), the purpose of the financial aid (e.g., the tuitions is tax deductible, living expense is not tax deductible). You should check with school’s international student office. They should offer help. H&R is not going to help much.
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