Graduate Tuition Remission Benefit
Full-time Faculty | Human Resources

Tax Implications of Graduate Tuition Benefits

• The total dollar amount of tuition for graduate courses taken by you, your spouse or domestic partner and your eligible children may be treated as taxable income to you.
• Your annual tuition remission benefit amount that exceeds $5,250 in a calendar year will be reported as taxable income on your W-2 form at the end of each calendar year. Consult a tax advisor for possible deductibility.
• All graduate tuition remission benefit for your spouse, domestic partner and dependent children is a taxable fringe benefit to you.
• The tuition remission is taxed based on the course in which you or your eligible family member is enrolled. If graduate credit is given for the course, the tuition remission is taxable income. If the course awards undergraduate credit, the tuition remission is not taxable. This is true whether you or your eligible family member is an undergraduate or graduate student.
• All taxable income will be recorded on your paycheck in equal installments in the term in which you or your eligible family members receive the tuition benefits.

1. The tuition installments will be recorded as income to you in the “Hours and Earnings” section of your paystub. The description will be “Grad T”. This amount is added to your regular pay and any other earnings reported in this section of your paystub.

2. Federal, state and FICA (social security and Medicare) taxes are then calculated and withheld on your total taxable income for that pay period. The University does pay its share of the FICA tax on the graduate tuition benefit.

3. In the “After-tax Deductions” section, the “Grad T” amount is deducted as this is fringe benefit income (not regular earnings given to you as take-home pay). The net effect on your paycheck is the tax deduction incurred due to the addition of the tuition remission benefit. Here is an example when a 3 semester-hour graduate course is taken with a tuition benefit of $2,064.00:

Changes During the Semester

• If you or a dependent drop a graduate course during the term, the student refund policy is applied for tuition remission. Any pro-rated tuition remission recorded may be taxable to you as noted above.
• If you terminate employment from a tuition remission eligible position at Roosevelt, you may have tuition and tax liability. Tuition remission will applied on a pro-rated basis up to your final date of employment. You must make arrangements for payment of your or your dependent’s tuition balance with Student Accounts prior to your final working day in the tuition remission eligible position.

Benefit Enrollment Each Semester

The tuition remission benefit must be applied for and approved each semester using the appropriate enrollment form.

• The process begins when you or your dependent register for classes. Be sure to retain a copy of your registration confirmation as you will need it to complete your tuition remission form.
• Complete the tuition remission form, sign it and obtain your department head’s signature. You will need to include the specific course information on this form so you must have already registered.
• Hand-written or incomplete forms or forms that have not been signed by you and your department head will be invalid.
• Send the completed and signed tuition remission form to Chris Korn in Human Resources. You will receive an e-mail confirmation of your benefit. Upon approval, your form will be sent to student accounts so that your tuition remission benefit can be applied to your account. If you do not receive a confirming e-mail, please contact Chris at extension 6932.
• Please be reminded that you must pay your registration fee and non-covered tuition and other fees in a timely manner to continue to be eligible for tuition remission in subsequent semesters.

Human Resources | Benefits | Full-time Faculty