Currently, for academic courses below the graduate level at a tax-exempt educational institution, up to $5,250 of STRP or departmental assistance can be excluded from an employee's gross income under section 117 and/or 132 of the Internal Revenue Code. Support for graduate courses is reported as part of the employee's income if the graduate course is not job related.
If the assistance exceeds $5,250 in one tax year regardless of the source of University funds or if a graduate course is not job related, the reimbursement will be reported as income on the employee's paycheck. (See Guide Memo 22.11 for additional tax information.)
Financial Aid Consideration: This program for tuition benefits could affect other financial aid benefits. Contact the Financial Aid Office at the college, university, or institution to be attended for more information.