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About Tuition Remission / Tuition Waiver
Wright State University encourages employees, and their spouses, children and stepchildren, and contract employees to enroll for classes. For this reason, the university has a tuition remission benefit for all eligible employees, as well as their spouses, children and stepchildren, and contract employees.
Tax Implication: The federal government treats tuition and/or fees waived for graduate degree courses as taxable income to the employee, regardless of whether the courses are taken by the employee, spouse, or children/stepchildren.
Policy
Tuition Remission Eligibility and Benefits
| Employees | Retirees, Spouses, and Dependent Children and Stepchildren | Non-Dependent Children and Stepchildren | |
|---|---|---|---|
| Who is eligible? | Benefit-eligible employees (i.e. those employees that are 75% full-time equivalency or greater) | Benefit-eligible employees and their spouse, children, and stepchildren who meet the IRS qualifying child definition. Eligible retirees and their spouse, children, and stepchildren who meet the IRS qualifying child definition. | Children or stepchildren of an active benefit-eligible employee who DOES NOT meet the IRS qualifying child definition. |
| Degree level |
Undergraduate and graduate-level coursework, subject to the program's requirements. Professional programs including but not limited to Boonshoft School of Medicine and School of Professional Psychology degrees are excluded from this benefit. |
Undergraduate and master’s-level coursework, subject to the program's requirements. | Graduate-level coursework in a master's degree program only. |
| Tuition Remission Benefit | 100% of instructional fees. Maximum of 8 credit hours per semester. The benefit does not cover other fees. | 80% of instructional fees. The benefit does not cover other fees. | 50% of instructional fees. The benefit does not cover other fees. Benefit cannot be combined with any other institutional aid including grants, scholarships, and assistantships. |
| Taxable to employee? | The IRS considers graduate tuition waived above $5,250 in a calendar year to be taxable income to the employee. |
For retirees, graduate tuition waived above $5,250 in a calendar year is taxable income to the retiree. For spouses and children of active benefit-eligible employees and retirees, the IRS considers all graduate tuition to be taxable income to the employee or retiree. |
The IRS does not exempt graduate tuition provided under this benefit from the taxable income of the employee and any benefit used will be subject to applicable taxes. |
Examples
Example 1
Michael is an active Wright State benefit-eligible employee and an undergraduate student enrolled in 12 credit hours during the spring semester. He is eligible for fee remission for 8 credit hours at 100% of the instructional fee. The remaining 4 credit hours are not eligible for fee remission and are Michael’s responsibility to pay.
Example 2
Sean is an active Wright State benefit-eligible employee and a graduate student enrolled in 6 credit hours during the fall semester and 6 credit hours during spring. He is eligible for fee remission for each semester at 100% of the instructional fee. The total cost of instructional fees is $7,500. Because this amount exceeds the IRS tax-free limit of $5,250, the remaining $2,250 is considered taxable income to Sean and will be taxed accordingly through payroll deduction.
Example 3
Julie is an active Wright State benefit-eligible employee and has a 19-year-old child, Chris, who MEETS the definition for an IRS qualifying child. Chris wants to enroll in undergraduate classes.
Using the chart above, Chris is eligible for the General Fee Remission benefit at 80% of the instructional fee.
Example 4
Brenda is an active Wright State benefit-eligible employee with a 28-year-old child, Tonya, who DOES NOT meet the definition for an IRS qualifying child. Tonya wants to enroll in graduate classes.
Using the chart above, Tonya is eligible for the Non-Dependent Fee Remission benefit at 50% of the instructional fee. However, any tuition waived under this benefit will be considered taxable income to Brenda, and will be taxed accordingly through payroll deduction.
Disclaimer: This information is provided for general informational purposes only and does not constitute policy compliance or tax advice. Employees should consult a qualified tax professional regarding their individual tax situation or Human Resources if there are questions regarding eligibility or the final benefit.