TA/AI Tuition Assistance Frequently Asked Questions

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Q:  Do I have to be registered in order to receive the Tuition Benefit?
A:  No.  The credit will be applied as long as the student has a valid record in the Student Information System. 

Q:  What is the difference between the tuition credit and the tuition payment?
A:  A credit to the tuition bill is created upon the initial attempt to approve the appointment.  No actual cash is applied.  When the tuition benefit payment is processed on the first semi-monthly payroll, the amount previously credited to the tuition bill will be deducted from the paycheck and applied to the tuition bill balance.

Q: What happens if I have had a credit applied to my tuition bill but end up paying the full tuition bill before the tuition benefit has been paid via the payroll process?
A:  If the tuition bill reflects no outstanding balances at the time the tuition benefit is paid on the first semi-monthly payroll, the student will receive the full tuition amount (less taxes) on that paycheck.

Q: Will tuition loans still be available to Teaching Assistants and Assistant Instructors?
A:  Yes.

Q: If I have other amounts that will be applied to my tuition bill, what is the order in which they will be applied?
A: The order amounts will be applied is as follows:   Exemptions, Assistance (including Scholarships and the Tuition Benefit) and any other remaining amounts such as tuition remission.

Q:  Will I still have to pay the balance on my tuition bill if I have a tuition credit applied?
A:   Yes.  The credit will reduce the amounts owed by the student, but the student is still responsible for full payment of the balance by the published payment deadline (August 16th for the fall semester).  If the student opts for an installment plan, the minimum installment amount must be paid by the published payment deadline.

Q:  How are the Federal Withholding Taxes computed on the Tuition Benefit Payment?
A:  Tuition Benefit payments are considered wages, and as such are subject to federal withholding taxes.  Amounts paid are reported at year-end on your W-2 along with other earned income.  The taxes are computed using the IRS Monthly Table for Percentage Method.  Tuition Assistance amounts will be taxed separately from other income received in the same pay period and will be based on the withholding status claimed on IRS Form W-4.   Per IRS regulations, taxes for nonresident aliens are computed using an additional $221 added to taxable gross.  The tax tables can be found on the UT Payroll Services web site at http://www.utexas.edu/payroll/withholding/current.html. For more information on taxes and tuition benefits see Tax Considerations and Assistance for Student Employees.

Q:  Will the Tuition Benefit be reported on my W-2 Form, 1042-S Form or 1098-T Form?
A:  The Tuition Benefit payment is considered wages and will be reported on the W-2 Form and/or the 1042-S Form if the student is also a nonresident employee claiming a tax treaty exemption.  The Tuition Benefit will not be reported on
Form 1098-T.

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