Good News: you no longer need to complete a Determination of Tax Status Form each year for Tuition Benefits. The Department of Human Resources will notify you before you add or drop a course if your program is determined to be taxable.
So what happens if your program is determined to be taxable? Here are some important things to know:
*You will receive a $5,250 annual exclusion on your tuition.
*Any tuition amount over the exclusion is considered reportable taxable income.
*The tax reporting will be processed over specific months within the term (see the schedule below).
Fall Term: October, November, and December
Jan Term: November and December
Spring Term: March, April, and May
May Term: April and May
Summer Term: July and August
August Term: July and August
*The Department of Human Resources will contact you via email outlining the amount you will be taxed and the specific pay periods prior to the first paycheck affected each term.
*Remember that the taxable amount is NOT what will be deducted from your paycheck.
*The taxable amount can help you calculate your additional tax withholdings.
*The additional tax withholding that will be deducted from your pay depends on your W-4 elections.
The Tuition Benefits website can provide helpful information on how to better calculate your withholdings under Graduate Tax Information.
Considering a program and want to know the taxable status of that program? Have other questions? Contact us at tuitionbenefits@smu.edu or visit the Tuition Benefits website regularly for updates.
