Tuition support for university employees is primarily provided via the university’s formal Tuition Assistance programs administered by Human Resources. In compliance with IRS regulations (section 127), this employer-provided educational assistance is exempt from taxation up to a maximum of $5,250 per calendar year (determined by payment date of the course). Taxes will be deducted from any reimbursement over $5,250 and you will receive the net cost. If you are earning your degree at JHU or utilize the direct bill payment option, you will be responsible for paying imputed income taxes on any benefit over $5,250. This amount will be deducted from your paycheck throughout the year. Any benefit payment processed in November or December will be taxed in the following calendar year.
Departmental support provided outside of the university’s Tuition Assistance program is fully taxable. This taxable benefit will be included in your earnings and you will be responsible for paying imputed income taxes. These taxes will be deducted from you paycheck. Any support posted to your student account in October, November or December will be included in your income and taxed in the following calendar year.
Scholarship funds for tuition awarded by committee review through the financial aid offices are occasionally awarded to employees. In these cases, the award is based on a needs-based or academic criterion (or both) that is not related to employment at the university and is treated as tax-free scholarship.