Taxability of Tuition Assistance Program
Wayne State University offers eligible employees the opportunity to pursue higher education free of charge for both undergraduate and graduate coursework. In addition, an eligible employee's spouse and/or children may qualify for a tuition discount for undergraduate and graduate courses. Undergraduate tuition benefits are not taxable for employee, dependent spouse and/or dependent children of the employee but are taxable for non-dependent children of the employee. Dependent is defined by the IRS in IRC Sec. 152. Graduate tuition benefits are taxable income. In order to be compliant with IRS regulations, we will begin additional tax withholding associated with the taxable benefit during the term for which the benefit is received.
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