Taxability of Graduate Level Tuition & Service Fee Waivers 

Graduate level tuition and service fee waivers that are a benefit of employment are considered taxable income by the IRS.  As a result, you may see a reduction in your take-home pay for the months of October, November and possibly December of the fall semester, and March, April and possibly May of the spring semester.

To find out if you're affected, calculate the potential impact, and get additional assistance, you can:

Enroll in the Earn course

Download the Net Pay Calculator

Set up an appointment

Other Online Resources

There are several online resources to assist you in preparing for the Taxability of Tuition waivers.

  • University of Illinois System USFSCO's Student Money Management Center's web page contains more information about tuition waiver taxability for graduate assistants.
  • University Payroll & Benefitsweb page has important information and calculators to help you estimate the impact this withholding will have on your pay. 
  • University of Illinois Extension, the educational outreach arm of the University, has Getting Through Tough Financial Times to assist in managing the potential loss of income as well as Choosing a Financial Professional to assist with seeking financial advice.
  • Questions about taxability of your fellowship funds? Read the IRS publication specifically on scholarship and fellowship funds. Use the University of Illinois Extension website Choosing a Financial Pro if you need tax advice.