Financial Aid is now sending a listing of the tuition benefits paid each semester on the behalf of Support GAs to the Payroll/Business Office. This will increase taxable income and possibly the federal income tax deduction. If you do not have enough gross pay to cover the tax calculated, then no tax will be deducted. This amount does not increase your net pay. If you have any questions feel free to contact Dustin Agee in Payroll at extension X3041.
Here is an explanation of how the IRS treats assistantships:
Tuition benefits offered to graduate assistants are generally excluded from taxable income under section 117(d) of the Internal Revenue Code (IRC). However, section 117(d) only excludes from taxable income tuition benefits for graduate students who are engaged in teaching activities or research activities at the University. Graduate assistants not engaged in such teaching or research activities at the University cannot be excluded from taxable income under section 117(d). These assistantships do not qualify for the $5,250 exclusion.