Tuition Assistance

Undergraduate Tuition Benefits – Full-time Employees

Graduate Tuition Assistance – Full-time Duke Employees

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Undergraduate Tuition Benefits – Full-time Employees

Undergraduate Tuition Assistance

Undergraduate tuition paid under Duke’s tuition plan is generally not taxable. Please visit the Duke Human Resources website for more information on this plan.

Spousal Tuition Assistance

Undergraduate spousal tuition paid according to the general Duke tuition assistance plan is non-taxable. For information on spousal graduate tuition assistance, click here.

Employee’s Children (Tuition Grant Plan)

Undergraduate tuition paid on behalf of an employee’s child is non-taxable. This payment is made directly to the child’s college or university.

Future Work Requirement

If a tuition assistance plan has a minimum future work requirement, an employee must meet that requirement or repay their tuition assistance. Qualified tuition assistance plans that require future service are:

  • Respiratory care service tuition assistance

  • Employee development initiative

  • Duke Clinical Research Institute tuition assistance partnership

  • Nursing services hospital nursing tuition professional development program

  • Nursing education loan payment program

  • Certified registered nurse anesthetist education program

  • Watts School of Nursing tuition based reimbursement agreement

If you have any questions as to the taxability of a specific plan, please contact Corporate Tax at (919) 684-0756.

IRS References: IRS code § 127, IRS code § 117(D)(5), 117 (D), Private Letter Ruling 9040045

 

Graduate Tuition Assistance – Full-time Employees 

Tuition payments of up to $5,250 annually are excludable from an employee’s income for graduate study, provided that the tuition payment is made according to one of Duke’s formally approved, written tuition assistance plans. This exclusion is limited to the employee. Please contact Duke Human Resources for a complete listing of all of our plans.

Graduate level tuition assistance in excess of $5,250 annually is reportable as income to the employee.

The sole exception to the rule regarding taxability occurs when an employee receives a scholarship awarded and reported through a University Financial Aid Office, and the scholarship is not funded by the employing department. In this situation, the entire financial aid award is not taxable.

Graduate Tuition Assistance – Spousal

Graduate spousal tuition is taxable and does not qualify for the $5,250 exclusion. Tuition payments in this category do not qualify for the exclusion and are fully taxable.

Future Work Requirement

If a tuition assistance plan has a minimum future work requirement, an employee must meet that requirement or repay their tuition assistance. Qualified tuition assistance plans that require future service are:

  • Respiratory care service tuition assistance
  • Employee development initiative
  • Duke Clinical Research Institute tuition assistance partnership
  • Nursing services hospital nursing tuition professional development program
  • Nursing education loan payment program
  • Certified registered nurse anesthetist education program
  • Watts School of Nursing tuition based reimbursement agreement

 IRS References: Publication 520