In addition to understanding the specifics of the Tuition Remission Program, you should also become aware of the implications to your tax payments and other legal information.
Income Tax Considerations
The Tuition Remission benefits you, your spouse, or your dependent children receive may be subject to federal income taxes, Massachusetts state income taxes, and FICA taxes.
Under current tax laws:
- Effective January 1, 2002, up to $5,250 in value of graduate Tuition Remission benefits for employees are, generally, not considered taxable income. Graduate Tuition Remission in excess of $5,250 per calendar year for employees and all graduate Tuition Remission benefits for spouses are generally subject to Federal, State, and FICA taxation.
- Tuition remission benefits for undergraduate courses are generally tax-free.
Due to nearly continuous changes in the tax laws, please contact Human Resources for the current status concerning the taxability of Tuition Remission benefits. You may also want to consult with a tax advisor.
Type of Program
The Boston University Tuition Remission Program is an unfunded educational assistance program. It is not subject to the provisions of the Employment Retirement Income Security Act (ERISA) of 1974. Any determinations by Boston University regarding eligibility for the Tuition Remission Program or benefits thereunder are final, binding and conclusive.
Boston University intends to continue the Tuition Remission Program indefinitely; however, the University reserves the right in its discretion to amend, suspend, or terminate the program at any time.
For additional information concerning the Tuition Remission Program, contact Human Resources.