Graduate Course Tax Exemption

The university manages its tuition remission plan in accordance with Internal Revenue Service (IRS) regulations. Undergraduate tuition benefits are generally exempt from tax withholdings The IRS allows up to $5,250 for graduate-level courses to be tax-exempt per calendar year. 

Tuition remission benefits received in excess of $5,250 are taxable (i.e. Federal, State, Social Security, and Medicare taxes) and are added to your gross income. Here is an example of a biweekly paycheck that is being taxed for graduate-level courses. For a graduate course to be considered tax-exempt, it should have a direct correlation to the employee's primary benefits-eligible position. The course should also help an employee maintain or improve the skills required for the position. However, a course that is intended to help an employee pursue a new career or promotion, and/or meet the minimum requirements of a primary position, is not eligible for tax exemption. 

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Applying for Graduate Tax Exemption

The online graduate course certification process is available only to university benefits-eligible employees. An online certification must be submitted for each work-related graduate course you intend to have reviewed for tax exemption.   

NEW!  Eligible affiliate employees of CNMC, VA, N/AROTC will now apply online for graduate course tax exemption.  

Resources to Help You Apply:

• Graduate Course Tax Exemption Online Application
• Tax Exemption Frequently Asked Questions (PDF)
• Tuition Remission Benefits Policy (PDF) 

Graduate Course Certificate Deadlines

Please note the deadline to submit the graduate course certification is earlier than that for the tuition remission application.  

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