Staff who are classified as graduate level students taking courses required by their employer or to maintain or improve skills needed in their present job are exempt from taxation. To claim this exemption, please complete the Job Related Tuition Waiver Form. This form requires both the signature of the employee and the department head. Once the form has been completed, return the form to the University Wide Payroll Office at P115 Andy Holt Tower, Knoxville TN, 37996 or email it to email@example.com.
Beginning Spring Semester 2012, the university will begin withholding taxes on the non-qualified graduate fee waivers once the $5,250 excludable amount has been reached for the calendar year. The in-state and out-of-state graduate fee waiver value will be prorated over several months and taxed according to the following schedule.
|Semester||Month(s) including additional tax withholding|
|Spring||February, March, April|
|Fall||September, October, November|
Because the fee waiver value (over the $5,250 in a calendar year) will be added to the taxable income on your check and taxed at the W4 graduated rate, you can take your specific tax situation in consideration and submit a new W4 to your campus Human Resources/Payroll Office to adjust the amount withheld. Please see your personal tax advisor for further advice.