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 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.
The waivers must be approved by both the Human Resources office and the Student Account Billing office. Please keep in mind that the sooner you turn in the tuition benefit form 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 are turning in a tuition benefit form for 3 credits @ $637/per credit hour. The total benefit​ would be in the amount of $1,911. Shown below is the calculation on the full amount of tuition. 
​Tax Calculation on $ 1,911.00​
​Tax Type Tax Rate​ Tax Amount​
​22% ​$420.42
​State ​4.25%
​Social Security
​6.20% ​$118.48
​Medicare ​1.45% ​$27.71
​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: Be sure to get tuition benefit forms turned in prior to calendar year-end to ensure proper reporting on your W-2.
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").