Saint Joseph’s University offers benefits-eligible employees the opportunity to pursue higher education free of charge. This exceptional benefit is offered for both undergraduate and graduate coursework. While undergraduate tuition remission is generally not taxed for benefits-eligible employees, their spouses, or their dependents, the Internal Revenue Service has ruled that graduate tuition benefits are taxable income. It is important that you understand how this affects your income and your paycheck prior to enrolling in courses.
Tax Implications (In accordance with IRC Section 117(d)
- Tuition benefits for undergraduate-level education for spouses and dependents are not considered taxable income
- Tuition benefits for graduate-level education for employees, spouses and dependents are considered taxable income and are subject to applicable payroll withholdings
The FAQs can be found here.