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Good News for Graduate Tuition Benefit Users

January 18, 2011, Volume 57, No. 18

Are you using Penn’s tuition benefit for graduate-level courses? If so, we have good news! In late December, the federal government approved a two-year extension of the tax exemption for graduate tuition benefits. That means you can continue to pursue the education you want without paying more taxes.

As you may know, the current Internal Revenue Service (IRS) tax exemption that allows for $5,250 in tax-free graduate tuition benefits was set to expire on December 31, 2010. Had that happened, your entire graduate tuition benefit would have been considered taxable income.

But thanks to Congress’s extension, the first $5,250 of your graduate tuition benefit will continue to be tax-free.

Keep in mind that Penn’s tuition benefit is not changing—it still covers 100% of the tuition, general and technology fees for a maximum of six course units per academic year. For more information about our tuition benefit program, visit www.hr.upenn.edu/benefits/tuition.

­—Division of Human Resources


Almanac - January 18, 2011, Volume 57, No. 18