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Tuition Remission for Spouses and Dependents
Spouse and Dependents of Regular Faculty and Staff and Retirees
1. Who is eligible?
- Spouse and dependent children of all eligible retirees and regular faculty and staff who are employed at least 50% are eligible for tuition remission. Tuition remission benefits are not available to spouses or dependent children of contractual employees, residents, graduate research assistants, or fellows.
- For employees hired before January 1, 1990, spouses and dependents are eligible for courses at both the undergraduate and graduate level.
- For employees hired after January 1, 1990, spouses and dependents are eligible for courses at the undergraduate level only.
- For employees hired after July 1, 1992, spouses and dependents are eligible after the employee has accrued two years of employment in the University System of Maryland, and then are subject to the same guidelines as above.
2. Who is considered a dependent child?
A dependent is a child who is "financially dependent" as that term is defined by the policy.
3. Are spouses and dependent children of deceased USM employees or deceased USM retirees eligible for tuition remission?
Yes, eligibility for tuition remission for spouses and dependent children expires at the end of 7 years following the death of the deceased employee/deceased retiree OR based on current dependent age criteria.
|Number of years of service of deceased employee/deceased retiree||Number of academic years for which spouses and dependents are eligible for tuition remission|
|Less than 3 years||1|
|At least 3 years, but less than 5||2|
|At least 5 years, but less than 7||3|
|At least 7 years, but less than 9||4|
|More than 9 years||5|
4. Is tuition remission for my spouse and dependents taxable?
Yes, tuition remission is taxable for all graduate level courses in a calendar year per IRS guidelines. The value of the tuition remission will be added to the employee’s earnings and taxed over one pay period if the taxable amount added to your income is $200 or less. If the amount exceeds $200, the taxation will occur over four or five pay periods as designated by the Maryland Central Payroll Bureau.
The full amount of undergraduate level tuition remission for spouses and/or children who are not claimed as a federal tax dependent in the year the benefits are received is fully taxable to the employee.
Retirees will be billed by the University of Maryland, Baltimore Central Billing Office for the taxes owed on taxable tuition remission.
5. How will I know if I will be taxed?
Keep spouse and dependent school bills and monitor the cost of each course. Each USM school has different rates. The UMB Benefits Office will notify employees approximately one week before the taxation will start as reported by the USM System's Office.
6. Will the letter I receive from the Benefits Office show what my net pay will be with the taxation?
No, the letters are prepared before payroll has been entered the Benefits Office does not have your net pay information. To review your paycheck online the Wednesday before payday, employees can click here
7. Can I ask for additional pay periods for the taxation to occur to decrease the taxable amount in each paycheck?
Per the Maryland Central Payroll Bureau, the deduction periods cannot be extended.