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  • 1.  Discounted tuition to employees as taxable benefit?

    Posted 2 days ago

    Good morning:

    Does anyone have any information/experience on whether institutions that offer a tuition discount to benefits-eligible employees who are also students consistent with what other students receive would need to treat this (the difference between full and discounted rate) as a taxable benefit?

    Thank you,



    ------------------------------
    Kevin Doyle
    President & CEO
    Hazelden Betty Ford Graduate School
    ------------------------------


  • 2.  RE: Discounted tuition to employees as taxable benefit?

    Posted 2 hours ago

    Graduate tuition remission is generally considered taxable income. The IRS allows a full reduction of tuition charges to employees, their spouses, and dependent children for undergraduate coursework to be excludable from gross income. However, for graduate education, the value of the tuition remission exceeding the $5,250 exclusion is taxable income. This means that any amount of graduate tuition remission that exceeds the $5,250 limit must be added to the employee's taxable wages and reported on the W-2 form. The additional taxable income will be subject to federal, Social Security, and Medicare taxes.



    ------------------------------
    Barbara Aughenbaugh
    Chief Financial Officer and Vice President, Administration & Finance
    University of Baltimore
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    Original Message


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