Tuition Benefits
Upcoming Tuition Exchange (TE) Family Webinars:
Reserve your spot for the fall 2024 webinar series hosted by the TE organization! These one-hour sessions will cover what TE is, key terminology, the TE application process, and more.
Students/parent planning to attend must register in advance by clicking the session below to receive the Zoom webinar link:
- Wednesday, October 23, 2024 8:00 p.m. EST
- Tuesday, November 5, 2024 7:00 p.m. EST
- Thursday, November 21, 2024 7:00 p.m. EST
- Monday, December 9, 2024 4:00 p.m. EST
- Tuesday, December 17, 2024 7:00 p.m. EST
- Eligible employees include full-time employees on the active payroll at the end of the late registration period (Free Drop/Add) for the semester in which the tuition remission is granted. This is generally the first two weeks into the semester.
- The Course Fee Waiver benefit is for the employee’s part-time study at the University of Delaware, but may be transferred to the employee’s eligible spouse and/or dependents.
- The Tuition Remission Program is available to eligible employees for their spouse and/or dependent child.
- A spouse must be in a legally recognized marriage or civil union recognized under Delaware law to the employee before the end of the late registration period in which the education benefit is granted.
- A dependent child is defined as a biological child or a legally adopted child of the employee or spouse (under the age 26), who will be claimed by the employee as an exemption for federal income tax purposes on the employee’s tax return for the year in which the benefit is granted.
- Tuition Exchange is available to eligible dependent children of full-time employees with at least two or more years of eligible University service as of Oct. 31 of the year in which the TE application is submitted.
- Cooperative Tuition Exchange is available to full-time employees only.
- Attend the University of Delaware part time using a Course Fee Waiver
- Attend Delaware Technical Community College or Delaware State University using the Cooperative Tuition Exchange
- Attend the University of Delaware as a full-time undergraduate student using Tuition Remission
- Attend Delaware Technical Community College (DTCC) as a full-time student in a degree-granting program using the DTCC Tuition Waiver Exchange program
- Attend the University of Delaware as a part-time student using a Course Fee Waiver
- Attend a participating school as a full-time undergraduate student using the Tuition Exchange program
- Attend the University of Delaware as a full-time undergraduate student using Tuition Remission
- Attend Delaware Technical Community College (DTCC) as a full-time student in a degree-granting program using the DTCC Tuition Waiver Exchange program
- Attend the University of Delaware as a part-time student using a Course Fee Waiver
When you save for your children’s education in a state-sponsored 529 savings plan, their dreams – and your future savings goals – become easier to achieve. Unlike other investment accounts or future student loans, a 529 plan allows you to take advantage of additional benefits, both now and in the future. Learn more.
What you should know about Education Taxation
Under IRS regulations, when an employee or eligible dependents of an employee utilize education benefits for graduate-level courses, the value of the Course Fee Waiver can be taxable to the employee.
You are encouraged to login to your student account through the Student Financial Services portal to verify your student charges and credits are accurate.
Federal legislation allows eligible employees to receive up to $5,250 each new calendar year in tax free education assistance for graduate level courses taken by the employee.
This means if the value of the employee’s Course Fee Waivers exceeds $5,250.00 within the calendar year, the amount in which exceeds the $5,250.00 is taxable to the employee. The taxation is based on how the employee sets up their tax with holdings. Please note, this does affect the paycheck and will result in less net pay until the taxation has been satisfied. Please visit our taxation schedule tab on this page, which may be helpful for financial planning.
Course Fee Waiver benefits used by a spouse, and/or dependent children for graduate level courses are reported as taxable income to the employee. The tax exemption of $5,250 does not apply to the employee’s dependents.
This means the value of the graduate Course Fee Waivers is taxable from the first dollar. The taxation is based on how the employee set up their tax with holdings. Please note, this does affect the paycheck and will result in less net pay until the taxation has been satisfied. Please see our taxation schedule tab, which may be helpful for financial planning.
A few days after the Free/Drop Add day of each semester (winter, spring, summer, fall) reports are generated to identify employees that are liable for education taxation.
Human Resources will then notify the employee via email of the taxable amount, when the taxation begins, and the number of pays the amount is divided over. The taxable amount is divided over multiple pays to ease any financial burden.
Payroll calculates the taxation based on your current with-holdings and it must be captured by the last paycheck in the calendar year. Please note, the fall semester can be challenging since there are only a few pays remaining within the calendar year.
- Winter session: taxation begins in January and typically divided over six pays.
- Spring semester: taxation begins in March and typically divided over eight pays.
- Summer session I & II: taxation begins in August and typically dived over six pays
- Fall semester: taxation begins in October and typically divided over six pays.
** Please note: the number of pays indicated above could be more or less depending on the calendar and payroll schedule.
Download our frequently asked education questions.
Tuition Differential Charge
Faculty and staff who take advantage of the tuition remission program for spouses and dependents will not be made to pay the differential charge for students in the College of Engineering, the Alfred Lerner College of Business & Economics and the School of Nursing. The differential will appear on tuition statements as a credit.
Connect
550 S. College Ave., Suite 201, Newark, DE 19713 hrhelp@udel.edu Phone 302-831-2171