Taxable Graduate Tuition Support Payments
Effective January 1, 2011, tuition support payments to University staff for graduate-level courses will become taxable compensation because the Internal Revenue Code Section 127 is expiring on December 31, 2010. This change does not apply to GSIs or GSRAs or any scholarship payments or tuition waivers.
Also, there will be no impact on tuition waivers that are provided to GEO members which are also covered under IRC Section 117. The only tuition support payments which will become taxable on January 1, 2011 are graduate-level course payments made to University staff who have requested monetary support in accordance with the University’s tuition support program outlined in SPG 201.69.
Please contact the HR/Payroll Service Center at 734-615-2000 with questions concerning this change.
More to say? Give us your feedback!