Tax Calculation for Taxable Tuition

Possible taxable situations:

  • Tuition for a spouse or dependent child(ren) is taxable if they are taking graduate or doctoral level classes.
  • Tuition for Other Eligible Individuals (OEI) and child(ren) of OEI on all class levels is taxable.
  • Tuition for yourself (Employee) that is for graduate or doctoral classes is taxed on the dollar amount over and above the first $5,250.00 of tuition benefits paid per calendar year.
  • Tuition for dependents eligible to be claimed on the employee's taxes but choose to file a joint tax return with their spouse is taxable for all class levels.  The correct IRS status to submit on the Tuition Benefit request is:
    • Qualified Child filing joint tax return with spouse, or
    • Qualified Relative filing joint tax return with spouse
Tuition Benefit requests must be approved by both the Human Resources office and the Student Account Billing office. Please keep in mind that the sooner you submit a Tuition Benefit Request the more pays it can be spread across.
Below is an example of the impact that taxable tuition could have on your pay. 
Example: You submit a Tuition Benefit request for 3 credits @ $726/per credit hour. The total benefit​ would be in the amount of $2,178. Shown below is the calculation on the full amount of tuition. 
​Tax Calculation on $ 2,178.00​
​Tax Type Tax Rate​ Tax Amount​
​22% ​$479.16
​State ​4.25%
​Social Security
​6.20% ​$135.04
​Medicare ​1.45% ​$31.58
​Total tax on tuition
To break it down by a per pay amount, just divide the “total tax on tuition” by the number of pays that it will be spread across.
NOTE: The deadline to submit a Tuition Benefit request is the last day of the applicable semester. 
For information on the tuition benefit program go to the Human Resources website at​ 
NOTE: You will NOT see the actual tax deduction.
             You WILL see the taxable tuition amount (in the "Other Taxable Section").