Tuition Remission

Our faculty, staff and retirees can use tuition remission benefits to take eligible academic courses for personal or professional development.

Stephens Hall

Tuition Remission Eligibility

Regular faculty/staff, lecturers and retirees (who retired directly from the USM) are eligible for tuition remission at any USM institution, at the undergraduate or graduate level, for up to eight (8) credits per semester. Contingent II employees are only eligible for tuition remission at TU. 

Regular faculty/staff, lecturers, and retirees (who retired directly from the USM) legally married spouse or dependent child (biological, legally adopted, step-child) are eligible for tuition remission after two years of full-time employment within the USM.  They must be enrolled in courses toward a first undergraduate degree at any of the . (If the dependent child or spouse has already earned an undergraduate degree from any institution, they are not eligible for tuition remission.)

Consult the for each school prior to applying for tuition remission

  •  (formerly UMUC)

Tuition remission is also available at the following reciprocal institutions:

Baltimore City Community College and St. Mary's only accept paper forms.  Please see link to form in step 3 below.

How to Apply for Tuition Remission

1

Apply and be accepted by a USM institution.

 

2

Register for classes.

 

3

Submit a tuition remission application in the USM online portal.  You must repeat this process for every semester enrolled.

Login to the  using your TU Net ID and password. This must be done for each semester registered. 

Retirees are now able to submit application through the Portal.  Please use this step guide for instructions:
Logging into the TR Portal for Retirees 

Those attending Baltimore City Community College and St. Mary’s College of Maryland must submit this paper form: Tuition Remission Form and Tax Affidavit (PDF). 

Submit paper tuition remission forms electronically via our secure file drop at .

 

4

Pay your fees.

This benefit covers tuition remission only.  All fees are the student’s responsibility. Fees and the tuition remission form are due by the institution's billing deadline.

NOTE: You will see the tuition on your student bill but once the tuition remission form is processed by the institution's billing office, the tuition will be credited back.  Please check your online invoice prior to reporting issues with tuition remission.  

5

Check your application status.

You can review the status of your tuition remission application by logging back into the . All applications are listed on your welcome page. Select the view application button and review the status.

Tuition Remission Tax Implications

When applying for tuition remission, it is important to understand the tax implications. Taxable tuition remission may affect the paycheck of the employee.  Please see the .

Courses taken by the employee/retiree:

  • Undergraduate tuition remission is non-taxable to the employee/retiree.
  • Graduate tuition remission is usually taxable. 
    • Per IRS regulation working condition fringe means: 
      The course is required by law or the institution in order for the employee to maintain employment. OR 

      The course is required for the employee to maintain or improve skills required for the position, AND the course will not qualify the employee for the minimum educational requirements of the position AND the course will not qualify the employee for a new trade or business.

      Tuition waived above the IRS limit of $5,250 in a calendar year is subject to the tax rates below. 

Courses taken by eligible spouse/dependents:

  • Undergraduate: To be considered non-taxable, the employee/retiree must claim the student as a dependent on their federal tax return for the year in which tuition remission is granted.  Please review the .
  • Graduate:  The full amount of tuition remitted is taxable to the employee.  Taxes will be withheld from the employees paycheck at the tax rates below.  

Tax Rates

If tuition remission is determined to be taxable to the employee, taxes will be withheld over 6 paychecks (4 paychecks in the summer).  The employee will be notified by Human Resources of the taxable amount of the tuition waived each semester.  Employees paychecks are not deducted for the amount of tuition, rather they are deducted for only the taxes on the amount of taxable tuition waived.  Employees can check their billing statement to monitor the amount of tuition waived each semester. Tuition taxes will be withheld at the following rates:

  • Federal 25%
  • State/Local 7-8%
  • FICA (Social Security & Medicare) 7.65% 

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