Tuition Waiver Taxation


UCF staff cannot give tax advice or assist students in calculating individual credit amounts. Please consult a tax advisor for assistance.  

UCF Employees

Tuition waivers received by UCF employees for graduate level courses are a taxable benefit under IRS regulations when they exceed the allowable limit. Please be advised that the value of the benefit above the allowable limit is included in your taxable income and is subject to the supplemental tax rate for federal withholding, plus the appropriate FICA tax rate. Those taxes will be deducted from your paycheck(s) and be included on your Form W-2 from UCF.


UCF Employees Spouse & Dependent Children

Graduate level courses taken by UCF employees’ spouses and dependent children will result in payroll and federal withholding taxes being withheld on the total amount of the waiver. Those taxes will be deducted from the employee’s paycheck(s) and be included on the Form W-2 from UCF.

For additional information regarding the payroll and federal tax withholding process, please contact UCF Human Resources Department at (407) 823-2771.