Graduate Fee Waiver Taxation

Category: Announcements

In October of 2010, the Internal Revenue Service issued guidance clarifying the federal income tax treatment of graduate tuition waivers provided by educational institutions. As a result, the University of Tennessee will tax graduate fee waivers provided to graduate assistants and regular employees. Graduate fee waivers provided to Graduate Teaching Assistants and Graduate Research Assistants are exempt from taxation under IRS Code Section 117(d). Please view the Payroll Office Fee Waiver Process Document for further information.