Graduate Tuition Waiver

My wife started a new job for a university and I was given a graduate tuition waiver. This will fully taxable but I don't fully understand how this will affect our taxes at year end. Does this mean if she makes xxx amount of dollars now it will be reported as xxx + waiver amount, and that total is what we will have to pay in taxes year end?

posted

jo104032,

One small correction: the first $5,250 of the graduate tuition waiver will not be taxed. See

https://www.govinfo.gov/content/pkg/USCODE-2011-title26/pdf/USCODE-2011-title26-subtitleA-chap1-subc...

As to how the university payroll handles this, the site https://www.du.edu/human-resources/benefits/tuition-waiver/taxation says it will be one W-2+xxx though I suggest giving them a call. Likely you will receive a W-2 and a 1098-T.