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Tax Compliance Forms & Resources

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  • TXST Tax Compliance Forms

    • Tax and Financial Aid Considerations for REU Participants

      • Tax-and-Financial-Aid-Considerations-for-REU-Participants.pdf

        As a part of your REU experience, you will receive stipend payments and reimbursements from Texas State. In some cases, Texas State may also pay some of your travel expenses directly. It is important that you understand the possible tax implications associated with those payments and your obligation to report the amounts to the financial aid office at your home university.

        Texas State University is not required to report fellowship payments (such as your stipend) and travel reimbursements to the IRS, as long as services are not required as a condition of receiving payments.

        Specifically, Treasury Regulation 1.6041-3(n) excludes from reporting:

        Payments to individuals as scholarships or fellowship grants within the meaning of section 117(b)(1), whether or not "qualified scholarships" as described in section 117(b). This exception does not apply to any amount of a scholarship or fellowship grant that represents payment for services within the meaning of section 117(c). Instead, these amounts are required to be reported as wages on Form W-2.

        Furthermore, the instructions to IRS Form 1099-MISC read:

        Do not use Form 1099-MISC to report scholarship or fellowship grants. Scholarship or fellowship grants that are taxable to the recipient because they are paid for teaching, research, or other services as a condition for receiving the grant are considered wages and must be reported on Form W-2. Other scholarship for fellowship payments (to a degree OR NONDEGREE candidate) are not required to be reported by you to the IRS on any form. See Notice 87-31 1987-1 C.B. 475 and Regulation section 1.6041-3(n) for more information.

        Although the payments you receive will not be reported to the IRS by Texas State, the payments may be taxable under certain circumstances. It is important that you maintain your own tax records in order to prepare your annual federal income tax return.

        For specific tax questions, please consult with your tax professional as Texas State University is not authorized to provide individual tax advice.

        You may also find it helpful to read IRS Publication 970, Tax Benefits for Education, which is available at:  https://www.irs.gov/pub/irs-pdf/p970.pdf

        All other federal income tax forms and publications may be downloaded from the IRS web site at http://www.irs.gov.

      • Please be sure to inform the Financial Aid Office at your home university about the funds you are receiving through the REU program at Texas State. Under federal law, you are required to notify your Financial Aid Office of scholarship or fellowship payments that you receive to defray your educational costs. The payments received from Texas State may be taken into consideration when determining your financial aid eligibility at your home institution.

    • Any authorized agent or employee of Texas State University who is purchasing an item necessary to Texas State's exempt functions should complete all blank sections of the Exemption Certificate, sign it, and provide it to the Texas vendor to ensure the purchase is tax free. Please be specific as possible when completing the "Description" area of the certificate. A copy of the completed Exemption Certificate should be maintained in your records. 

      Upon any questioning during a State audit, responsibility for explaining the purchases will fall upon the individual whose signature is presented at the bottom of the certificate.

      TXST Sales Exemption Certification

      TXST Sales Exemption Business Card

      TXST Hotel Occupancy Tax Exemption Certificate

       

  • Worker Classification (FS06)

  • Texas Comptroller Forms

    • The exemption from sales tax is for items an organization buys, not for the items it sells. Exempt organizations and other nonprofit organizations must get a sales tax permit and collect and remit sales tax on all taxable items they sell, unless an exemption or exception applies.

    • When you calculate the sales tax by multiplying the tax rate by the sales price, calculate the tax to the third decimal place. If the third decimal place is equal to or greater than five, round up to the next cent. If the third decimal place is four or less, round down to the next cent.

      EXAMPLE: You sell a taxable item for $250 and must charge 8.25 percent tax. The tax rate multiplied by the sales price equals $20.625. Because the third decimal place is a five, round up and charge $20.63. You can also use a rate chart.

    • Use this chart to determine which tax exemptions may apply to your organization. Remember that while federal and Texas state and local government entities are automatically exempt from the taxes indicated in the chart, nonprofit organizations must apply with the Comptroller’s office and receive exempt status.

      Texas public schools, colleges and universities have a dual exemption as both educational organizations and as government entities.

      Purchases must relate to the nonprofit’s exempt purpose. Employees and volunteers cannot buy personal items tax free, even if traveling on official business or if reimbursed by the nonprofit organization.

      Beer, wine and liquor purchases do not usually qualify for exemption because they are not part of the nonprofit’s exempt purpose. An exempt religious organization can claim an exemption when it buys sacramental wine.

      Organization Sales Tax State Hotel Tax Local Hotel Tax Motor Vehicle Tax
      Charitable Yes Yes No No
      Educational – Public College/University Yes Texas schools only No Texas schools only
      Federal Tax Exemption 501(c)(3), (4), (8), (10) or (19) Yes No No No
      Texas State and Local Government Agency Yes No No Yes

       

    • Sales Tax

      If a nonprofit organization has qualified for sales tax exemption with the Comptroller’s office, it can claim a sales tax exemption when it buys a taxable item by giving the seller a properly completed Form 01-339, Texas Sales and Use Tax Exemption Certification (exemption certificate) (PDF).

      An authorized agent can buy items tax free by giving the seller a properly completed exemption certificate in the exempt nonprofit organization’s name. An “authorized agent” is a person designated by the exempt organization to buy items on its behalf.

      Sellers do not have to accept an exemption certificate. If a seller does not accept an exemption certificate, the exempt organization can ask the seller for a completed Assignment of Right to Refund (PDF) to request a refund directly from the Comptroller’s office.

      Hotel Tax

      If a nonprofit organization has qualified for hotel tax exemption with the Comptroller’s office, it must give the hotel a properly completed Form 12-302, Texas Hotel Occupancy Tax Exemption Certificate (PDF), and letter of hotel tax exemption from the Comptroller’s office at check-in. The exemption is only for the state hotel tax and not local hotel taxes. The Comptroller’s Tax-Exempt Entity Search lists nonprofits that are exempt from state hotel tax.

      An employee traveling on official business for the exempt organization qualifies for the exemption. A representative claiming an exemption who is not an employee of the exempt organization must pay the hotel directly with the organization’s funds, such as an organization check, credit card or direct billing, to qualify for the exemption.

  • COVID-19 Federal and State Reporting

  • IRS Forms

    • Use this form to apply for an employer identification number (EIN).

      Forms SS4 (pdf)

       

    • An ITIN is a 9-digit number issued by the U.S. Internal Revenue Service (IRS) to individuals who are required for U.S. federal tax purposes to have a U.S. taxpayer identification number but who do not have and are not eligible to get a social security number (SSN).

      Use this form to get or renew an individual taxpayer identification number (ITIN) for federal tax purposes if you are not eligible for a social security number.

      Instructions for Form W-7 (HTML)

      Form W-7 (PDF)

      Employer ID Numbers

      Apply Online

    • Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals).

      Form W-8BEN

      Inst W-8BEN

    • Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities).

      Form W-8 BEN-E is used by foreign entities to document their status for purposes of chapter 3 and chapter 4, as well as other code provisions.

      Form W-8BEN-E

      Inst W-8BEN-E

    • Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual.

      Form 8233

      Inst 8233

  • Sales Tax Resources