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.
For the fall and spring semesters, the maximum number of pay periods to spread the payments over is eight. In order to take advantage of the maximum number of payments, the payroll office will need to receive the approved tuition benefit form from Human Resources at least 1 week before the semester begins.
Below is an example of the impact that taxable tuition could have on your pay. Please keep in mind that the sooner you turn in a tuition benefit form the more pays it can be spread across.
Example 1: You are turning in a tuition benefit form for 3 credits @ $366/per credit hour. The total benefit​ would be in the amount of $1098. Shown below is the calculation on the full amount of tuition.
​Tax Calculation on $1098.00​
​Tax Type Tax Rate​ Tax Amount​
​Federal ​22% ​$241.56
​State ​4.25% ​$46.66
​Social Security
​6.20% ​$68.07
​Medicare ​1.45% ​$15.92
​Total tax on tuition ​$372.21
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 (in the "Other Taxable Section") the taxable tuition amount.