Are Tuition Assistance benefits taxable?
The Tuition Assistance benefit is intended to provide benefits that are, to the extent possible, excluded from taxation under IRS Code Sections 117(d) and 127 (when in effect) and other applicable laws. Nonetheless, many benefits provided will constitute taxable income to the employee, and the employee sponsoring his or herself, child and/or spouse, or a former employee sponsoring his or her child is responsible for any tax liability resulting from employer-provided tuition assistance. The University is required by law to report to the Internal Revenue Service the gross amount of the tuition assistance received subject to taxes and the taxes withheld as part of an employee’s earnings. The gross amount is taxed and reported in the same semester in which the benefit is received. Currently, graduate courses taken by an employee’s or former employee’s child or employee’s spouse are taxable income and subject to withholding and reporting to the Internal Revenue Service. Currently, tuition a
