Information about and forms for the tuition remission benefit are listed below. If you have questions about this benefit, please contact the Office of Human Resources.
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Tuition Remission Details for Regular Employees, Faculty, and their Spouse or Dependents
Tuition remission benefits are available for regular staff, faculty, and retirees (including their spouses and dependent children) of the constituent institutions and components of the University System of Maryland (USM). The specifics of this benefit vary for the employee, their spouse, or their dependents and are determined by when the employee was hired. Anyone interested in tuition remission benefits should review the relevant USM policies. Tuition remission benefits may be taxable. See Tuition Remission Potential Tax Liability Information.
The following restrictions apply:
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- Applicants must be admissible to desired institution and program.
- Students must pay mandatory fees.
- Certain programs are not included.
- Spouses and dependent children are subject to institutional enrollment limitations (caps).
- Spouses and dependent children of retirees hired on or after 01/01/90 are not eligible for tuition remission.
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If you have questions after reading the information below, please contact the Office of Human Resources.
I. Employment Date of Employee or Retiree is prior to 1/1/90
Full-Time Active Employee - May register for up to 8 credits per semester and receive tuition remission at ANY institution in the System. Some schools may limit the number of credits during the summer session. The benefit is offered immediately upon hire for you to use at the start of the next semester.
II. Employment Date of Employee or Retiree is on 1/1/90 thru 6/30/92
Part-Time Active Employee - May register and receive tuition remission at ANY institution in the System. The amount of tuition remission is based upon the percentage of time worked.
Spouse/Dependent - If you are a spouse or dependent of a full-time active employee, you may receive 100% tuition remission for courses at BOTH the undergraduate and graduate level, at ANY institution in the System including Morgan, St. Mary’s College of Maryland, and Baltimore City Community College. If you are a spouse or dependent of a part-time active employee who works 50%, you may receive tuition remission for courses at BOTH the undergraduate and graduate level, at ANY institution in the System. The amount of the tuition remission is based upon the percentage of time worked.
Retiree - If you were employed full-time, you may register for up to 8 credits per semester and receive tuition remission at ANY institution in the System. - If you were employed in a part-time capacity at least 50%, the benefits are the same as full-time, except the tuition remission will be prorated based upon the percentage of time worked. Benefits are also available for a retiree’s spouse or dependent children. However, no benefits are offered to retirees whose service began before 1/1/90 at St. Mary’s College of Maryland.
Full-Time Active Employee - May register for up to 8 credits per semester and receive tuition remission at ANY institution in the System. Some schools may limit the number of credits during the summer session. The benefit is offered immediately upon hire for you to use at the start of the next semester.
III. Employment Date of Employee or Retiree Began on July 1, 1992, or Later
Part-Time Active Employee - May register and receive tuition remission at ANY institution in the System. The amount of tuition remission is based upon the percentage of time worked.
Spouse/Dependent - If spouse or dependent of full-time employee, you may receive 100% tuition remission for courses toward the first undergraduate degree ONLY. Since UB is an upper-level institution*, spouses and dependents shall receive 100% tuition at any institution in the UM System for the freshman and sophomore years ONLY. In order for the tuition remission to continue in the junior and senior years, courses must be taken at the University of Baltimore. If the program of study is not offered at the University of Baltimore, the spouse/dependent child may enroll at another USM institution and receive 50% tuition remission. Tuition remission will not apply to courses registered for at the graduate or post-baccalaureate level. If spouse or dependent of employee who works at least 50%, the benefits are the same as for full-time spouse or dependent, but are prorated according to the percentage of time worked. If spouse or dependent of retiree whose employment began on or after 1/1/90, no tuition remission benefits are available. Morgan, St. Mary's College of Maryland and Baltimore City Community College are included for employee's dependent child(ren). Spouses may not enroll at Morgan, St. Mary's or BCCC.
Retiree - If you were employed full-time, you may register for up to 8 credits per semester and receive tuition remission at ANY institution in the System. If you were employed in a part-time capacity at least 50%, the benefits are the same as full-time, except the tuition remission will be prorated based upon the percentage of time worked.
Full-Time Active Employee - May register for up to 8 credits per semester and receive tuition remission at ANY institution in the System. Some schools may limit the number of credits during the summer session. The benefit is offered immediately upon hire for you to use at the start of the next semester.
Part-Time Active Employee - May register and receive tuition remission at ANY institution in the System. The amount of tuition remission is based upon the percentage of time worked.
Spouse/Dependent - Tuition benefits shall be available only after the active full-time or part-time (50%) employee has been in university service for two years prior to the anticipated date of registration for course work. If spouse or dependent of full-time employee, you may receive 100% tuition remission for courses toward the first undergraduate degree ONLY. Since UB is an upper-level institution*, spouses and dependents shall receive 100% tuition at any institution in the UM System for the freshman and sophomore years ONLY. In order for the tuition remission to continue in the junior and senior years, courses must be taken at the University of Baltimore. If the program of study is not offered at the University of Baltimore, the spouse/dependent child may enroll at another USM institution and receive 50% tuition remission. Tuition remission will not apply to courses registered for at the graduate or post-baccalaureate level. If spouse or dependent of employee who works at least 50%, the benefits are the same as for full-time spouse or dependent, but are prorated according to the percentage of time worked. If spouse or dependent of retiree whose employment began on or after 1/1/90, no tuition remission benefits are available. Morgan, St. Mary's College of Maryland and Baltimore City Community College are included for employee's dependent child(ren). Spouses may not enroll at Morgan, St. Mary's or BCCC.
Retiree - If you were employed full-time, you may register for up to 8 credits per semester and receive tuition remission at ANY institution in the System. If you were employed in a part-time capacity at least 50%, the benefits are the same as full-time, except the tuition remission will be prorated based upon the percentage of time worked.
*University of Baltimore began admitting freshman in 2007. The USM tuition remission policy stated here remains in effect.
Note 1
The term "child" for purposes of this policy, shall include a son, daughter, stepson, stepdaughter, legally adopted son, and legally adopted daughter. A "dependent child" is a child who is "financially dependent," as that term is defined by the Internal Revenue Service. Employees/retirees shall be required to provide proof of dependency, if requested.Note 2
Benefits are allowed to employees and retirees who work at least 50%. Spouses and dependents are eligible for benefits if the related employee or retiree worked at least 50%. NO BENEFITS ARE AVAILABLE OTHERWISE. A tuition remission form must be completed each semester. No tuition remission forms will be processed after fees are due and payable. -
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Tuition Waiver Details for Contingent II Employees
Contingent II employees may register for up to eight credits per semester (fall, spring, and summer) at the University of Baltimore only. Benefits are prorated for employees who work less than full time but at least 50%. Employees must be hired and working at the beginning of the semester to qualify for the tuition waiver for that semester.No benefits are offered to a Contingent II employee's spouse or dependent child(ren). See Tuition Remission Potential Tax Liability Information. -
Applying for Tuition Remission
- Complete the tuition remission request form and affidavit . These forms must be completed for each semester and for each student requesting tuition remission. Be sure to indicate the semester in which you are seeking tuition remission and your student enrollment status.
- Have your Department Head or Supervisor sign the affidavit.
- Send the completed and signed original to the Office of Human Resources for approval and processing. HR will forward copies of your request form to the Bursar’s Office of UB if you are attending UB, or to the Human Resources office of the USM institution you are attending. If you are attending UB, you will also receive a signed, approved copy of your request form.
NOTE: Each University System of Maryland campus has different tuition remission deadlines. Be sure to submit your completed tuition remission form according to the deadline for the campus you are attending.
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The University of Baltimore encourages faculty, staff and retirees to make use of the valuable tuition-remission opportunities available to UB employees and to many spouses and dependents.
Those who decide to take advantage of such benefits should familiarize themselves with any relevant information and details, including the potential tax liability associated with the value of tuition remission. It should be noted that the full tuition amount that is being charged for dependents and spouses is for graduate and law classes only—undergraduate classes do not get taxed.
When are tuition remission benefits taxable?
- Tuition remission benefits for employees for graduate level courses are taxable when the amount remitted during a calendar year exceeds $5,250.00
- Tuition remission for spouses and dependents at the graduate level are taxable.
- The IRS does not require taxation of tuition remission benefits for undergraduate courses unless the spouse or child is not claimed as a dependent on the employees' tax return.
This Tax Chart outlines when tuition remission is taxable.
What happens once the value exceeds the limit?The Bursar’s Office processes tuition remission after the add/drop date of each semester. If you are taking graduate classes at another University System of Maryland institution, please note that your tax liability information will be reported to you once it it is received from USM's centralized collection site. This information will likely come in later than the tax information you receive from UB.
If the tuition value exceeds the IRS limit after the remission has been processed, you will receive a notice from the UB Office of the Comptroller of any tax liability due for that semester.
Your tax liability will be spread over a set number of pay periods and will be deducted from your paycheck at a rate of:
- federal income tax: 25 percent
- state income tax: employee's current rate
- FICA: approximately 7.65 percent
Example:
- tuition remitted=$7,000 for the calendar year
- amount more than the IRS limit=($7,000-$5,250) $1,750
- taxable amount=$1,750
In this example, the taxable amount ($1,750) would be added to the employee's taxable income for the calendar year, thereby increasing his or her annual tax liability.
View the Comptroller of Maryland's Taxable Tuition Remission Requirements Memo (Feb. 21, 2008).
Complete University System of Maryland tuition remission policies:
- regular and retired faculty and staff:
- spouses and dependent children of regular and retired faculty and staff
Please contact the HR benefits specialist at 410.837.5410 for more information regarding tuition remission benefits.