Tuition Benefits for Faculty Members

Benefits-eligible, full-time faculty members are encouraged to take advantage of the university's tuition benefits program. Full-time, benefits-eligible faculty members can also receive tuition assistance for their dependent children. You can initiate and track tuition benefits requests through Workday.

On this page:

• Eligibility
• Number of Courses
• Benefit Level
• Course Content
• Taxation

Eligibility

• Courses Taken at Carnegie Mellon: Benefits-eligible full-time faculty
• Courses Taken at Another Institution: Benefits-eligible full-time faculty who are employed by Carnegie Mellon on the first day of the full semester on the Pittsburgh campus

Number of Courses

• Two courses at any one time per term (at one or multiple institutions)
• Course is defined as a semester-length class during the fall, spring, or first or second summer semesters. Alternatively, up to four (two if part-time) 4½- or 6-unit minis may be taken per semester, provided no more than two are taken at a time.

Benefit Level

• Courses Taken at Carnegie Mellon: 100% tuition remission
• Courses Taken at Another Institution: 50% tuition assistance. The reimbursement for a class taken outside of the university will be at 50% of the tuition charged, but cannot exceed the Carnegie Mellon tuition for an equivalent course during the same period.

Course Content

• Courses Taken at Carnegie Mellon: Any
• Courses Taken at Another Institution: Career-related or part of a career-related degree program

Taxation

Applicable taxes will be withheld from your salary, not from the benefit. Taxes must be withheld in the year in which the benefit was received (i.e., when the check is issued), regardless of when the courses are taken.

• Employees who have an undergraduate degree and are not enrolled in a second undergraduate degree program:
  • The first $5,250 in tuition benefits per calendar year is exempt from federal taxes. Tuition benefits that exceed $5,250 in a calendar year are subject to federal withholding.
    • Includes benefits for undergraduate courses taken while enrolled in a graduate program or as a visiting/non-degree student
    • Applies to courses taken at Carnegie Mellon or at another institution
  • Tuition benefits for courses taken at an institution other than Carnegie Mellon are also subject to state and local taxes, regardless of the benefit level.
• Employees who do not have an undergraduate degree or who are enrolled in a second undergraduate degree program:
  • Tuition benefits for undergraduate courses taken at Carnegie Mellon are not subject to federal, state or local tax withholding.
  • Tuition benefits for undergraduate courses taken at an institution other than Carnegie Mellon are subject to state and local taxes, but are not subject to federal withholding.

Taxes assessed on your tuition benefits will be withheld from your pay by Carnegie Mellon in three monthly installments (for those paid monthly) or in six biweekly installments (for those paid biweekly). Taxation will begin with the next pay following your application approval, and will be withheld across three months, or the number of months remaining in the calendar year, whichever is less. Changes to your benefit level in the middle of a semester (for example, adding or dropping a class) will be reflected in the taxes withheld in the remaining months.

Generally, employer-provided graduate tuition benefits that exceed $5,250 in a calendar year are subject to federal withholding.* Tuition benefits may be tax-free if they represent a working condition fringe benefit under IRS regulations. While Carnegie Mellon University is required to withhold federal taxes on graduate tuition benefits that exceed $5,250 in a calendar year, employees may consult with their tax advisor to determine if they qualify for any exemptions when filing their tax return.

*We are working on implementing procedures that will allow employees to certify, when applicable, their education as job-related, per IRS tax regulations. As a result, the value of this coursework will be excluded from U.S. federal income taxes as long as the employee’s education is job-related and meets the required certification procedures. Once implemented, CMU will no longer be required to withhold federal income taxes for certified, job-related tuition benefits valued at over $5,250 in a calendar year. Given that this change requires significant technical updates, which are still underway, this change likely will not be implemented until the start of CY 2025.