Remitted Tuition – Application for Employee Graduate RTB to be Non-Taxable

Form: Click here for the Application for RTB to be Non-Taxable Form

Remitted Tuition Taxabilty:

The Syracuse University Educational Assistance Plan allows employees and retirees who are eligible to take graduate level courses at the University pursuant to the University’s Remitted Tuition Benefits Policy to receive up to $5,250 worth of any such courses they take each calendar year on a tax-free basis as long as certain requirements are satisfied.

Among the more important requirements that must be satisfied are:

  1. That the courses must not be for education involving sports, games or hobbies (unless such education is required as part of a degree program),
  2. any graduate tuition costs that are covered by financial assistance, a fellowship, or a scholarship from any public or private source other than the University will not be eligible for the $5,250 tax exclusion, and
  3. each eligible employee or retiree must satisfy such other requirements for receiving graduate remitted tuition benefits under the Educational Assistance Plan as are specified by the University’s Office of Human Resources. Further information about the Educational Assistance Plan is available from the Office of Human Resources.

RTB used by an eligible University employee for qualifying graduate-level courses is tax free up to $5,250.00 per calendar year (this tax free treatment assumes the applicable requirements of the Syracuse University Educational Assistance Plan have been satisfied).

RTB used by an eligible employee for graduate-level courses in excess of the annual $5,250.00 limit is generally taxable to the employee, and subject to tax withholding by the University at the time the benefit is used. Internal Revenue Service regulations and applicable court decisions set forth circumstances under which graduate level courses in excess of the annual $5,250 limit taken by eligible employees using RTB may be non-taxable.

The link to the Syracuse University application form, instructions, and a flow chart to assist eligible employees in their determination of whether the RTB they use for such graduate courses is taxable is found below.

It is recommended that employees carefully read these documents and also consult with their personal tax advisor to determine whether or not their graduate RTB usage qualifies to be non-taxable, and whether or not to submit the application. Tax treatment is based upon the University’s review of the application.

For questions relating to the taxation of RTB, Contact Payroll.