Explore UAB

Colleges & Schools

UAB Financial Affairs

Educational Assistance

Educational Assistance Type

UAB Policy Number

Class Level

Educational Assistance Amount

IRS Regulation Section 117/127

Employee Policy 319.A Undergraduate 100% Nontaxable
Employee Policy 319.A Graduate 100% Taxable on amounts greater than $5,250 per calendar year*
Dependent Policy 319.B Undergraduate 50% Nontaxable
Spouse Policy 319.C Undergraduate 50% of 18 hours max Nontaxable
Sponsored Dependent Policy 319.B Undergraduate 50% Taxable on all amounts**
Sponsored Adult Policy 319.C Undergraduate 50% of 18 hours max Taxable on all amounts**

 

* Taxes are not withheld on the first $5,250 of Educational Assistance received in a calendar year (Jan-Dec). Amounts received during the calendar year in excess of $5,250 are taxable to the employee. Taxes are withheld from the employee's payroll disbursement across three monthly or six biweekly pay periods during the semester in which the Educational Assistance is received. The amount of the tax withheld is reportable in Box 14 of the employee's W-2.

** Taxes are withheld from the employee's payroll disbursement across three monthly or six biweekly pay periods during the semester in which the Educational Assistance is received. The amount of the tax withheld is reportable in Box 14 of the employee's W-2.

Note: Due to the complexity of the calculation of taxable educational assistance, we are not able at this time to provide a way to determine the amount of tax related to an individual employees educational assistance.

Back to Top