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Tuition Remission and Taxes


Taxable Tuition Remission and Summary

 

While tuition remission for undergraduate coursework for the employee, spouse and eligible child is not taxable, there are certain circumstances when tuition remission is taxable.  See the table below for further clarification.

Taxation Summary

Questions about the tax liability relating to tuition remission should be directed to your personal tax advisor or consultant.

Employee      Spouse 

Domestic PartnerEligible ChildUndergraduate CourseworkTax FreeTax FreeFully TaxableTax FreeGraduate Coursework   
Tuition remission in excess of $5250 in a calendar year is taxableFully Taxable
Fully TaxableFully Taxable
Employee       Spouse 

Domestic Partner Eligible Child
Undergraduate Coursework Tax Free Tax Free Fully Taxable Tax Free
Graduate Coursework   
Tuition remission in excess of $5250 in a calendar year is taxable Fully Taxable
Fully Taxable Fully Taxable
Employee       Spouse 

Domestic Partner Eligible Child
Undergraduate Coursework Tax Free Tax Free Fully Taxable Tax Free
Graduate Coursework   
Tuition remission in excess of $5250 in a calendar year is taxable Fully Taxable
Fully Taxable Fully Taxable
benefits graphic with red circle

Employee       Spouse 

Domestic Partner Eligible Child
Undergraduate Coursework Tax Free Tax Free Fully Taxable Tax Free
Graduate Coursework   
Tuition remission in excess of $5,250 in a calendar year Fully Taxable
Fully Taxable Fully Taxable


Notification of Taxable Tuition Remission

Employees whose current term tuition remission benefits are fully or partially taxable receive an email notice from Payroll prior to the payrun on which the increased tax withholding is applied.  

  • Those employees whose year-to-date graduate level SELF remission is greater than $5,250 will be taxed on the amount received in the current term in excess of the limit. 
  • Those employees whose family members received graduate level remission or whose domestic partners received any tuition remission will be taxed on the full benefit.
  • If you have questions regarding how taxable tuition remission will affect your take home pay consult your financial tax advisor.


Tuition Remission Tax Schedule

To ease the burden of additional tax withholding, the taxable value of the remission benefit is divided over two paychecks. The amount appears as Tuit Rem-Txbl on the pay statements, and will result in increased tax withholding.

Please note regarding taxable Tuition Remission:  If you or a dependent drops or adds a class which results in an adjustment to your taxable tuition remission for a given term, adjustments will be made as part of the ‘true up’ processing on the dates indicated below.  Adjustments will not be made after the taxable tuition remission amounts have been processed through payroll.

TERM

Bi-weekly
pay period

Bi-weekly
pay date

Monthly
pay period

Monthly
pay date

Spring Semester

5

03/03/20

2

02/28/20

Spring Semester

6

03/17/20

3

03/31/20

True Up #1 11 05/26/20 5 05/29/20

Summer Semester

14

07/07/20

6

06/30/20

Summer Semester

15

07/21/20

7

07/31/20

True Up #2

19

09/15/20

9

09/30/20

Fall Semester

22

10/27/20

10

10/30/20

Fall Semester

23

11/10/20

11

11/30/20

True Up #3

26

12/22/20

12

12/31/20

 

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