Qualified Tuition Reduction (QTR) is a benefit provided to all eligible employees, affiliated participants, and their spouses and dependents. It allows full-benefits-eligible employees to take courses at any of the three Arizona public universities (University of Arizona, Arizona State University, and Northern Arizona University) at at substantially reduced tuition rates.
Visit the Bursar's Office website and select “Tuition Fees” for tuition costs when using the QTR.
If the student is registered for classes and tuition has posted, the tuition reduction will post once it has been entered by the Bursar’s Office. The student will be able to see it in his/her student account in UAccess Student.
For employees and their spouses or domestic partners, QTR will be applied to up to 6 credit hours during Summer and Winter sessions and up to 9 credit hours during Spring and Fall semesters. The full tuition amount will be applied to any enrolled credits over the applied limitations.
Eligible dependent children who register for 1 or more credit hours will pay 25% of resident tuition plus any laboratory or course fees. Eligible dependent children who register for one 1 or more credit hours in UA Online will pay 25% of the UA Online per-unit fee.
Courses offered for credit through the Outreach College are eligible for QTR. Correspondence courses are not eligible for QTR. Please contact the Outreach College directly for more information: (520) 621-7224
You may have been reclassified as a non-resident. You can check your residency classification by contacting the UA Residency Classification team.
UA Residency Classification Phone: (520) 621-3636
I am taking courses at two Arizona universities during the same semester/session. Can I use QTR at both universities?
Yes, if you are enrolled in courses at the University of Arizona (UA), Arizona State University (ASU), or Northern Arizona University (NAU), you can receive the QTR benefit at each university simultaneously. In order to apply for QTR at two different universities, you will need to complete the application process twice in UAccess by applying first for one university and then for the other. QTR applications for courses taken at NAU or ASU must be sent directly to those institutions for processing.
Qualified Tuition Reduction eligibility is extended to administrative, professional, faculty and classified staff employees who are employed at .50 FTE and whose employment is expected to last 6 months or more; employees of affiliated units of the university; officially retired employees; spouses and dependent children of eligible employees.
Yes, QTR is available for both graduate and undergraduate degrees. QTR for graduate-level degree programs is considered taxable income. Please review the taxation process.
Guidance is available at www.irs.gov in Publication 501: Exemptions, Standard Deduction, and Filing Information. See the section on "Exemptions for Dependents."
No. QTR eligibility is extended only to administrative, professional, faculty, and classified staff employees who are employed at an FTE of .50 or greater and whose employment is expected to continue 6 months or more.
Yes, the University of Arizona offers a Domestic Partner Tuition Program (DPTP) to qualified University employees who have domestic partners. This benefit may only be used at the UA.
Complete the online application in UAccess Employee each semester/session. After logging in, select the Benefits tile, then select Education Assistance Plan(QTR), then choose EAP / QTR Application Form.
Applications can be submitted online up to 3 months prior to the beginning of the semester for which the tuition reduction is requested. A submitted online application does not guarantee continuation of this benefit if the employee's status changes prior to the first day of the semester.
The deadline for the fall and spring semesters is the 35th day of the semester for which the tuition will be applied. The deadline for summer sessions is the last day for refunds for each session for which the tuition will be applied. The online application will not be available after the semester's deadline.
Yes, you must submit a separate online application for each fall and spring semester. Only one application is required for all summer sessions.
Complete the online QTR application in UAccess Employee. When the online application is approved, there will be a prompt to print a confirmation. The printed confirmation must be turned in at the university where classes will be attended. It is your responsibility to submit your approved application confirmation to the university (ASU or NAU) you are attending. Check with that university's service center for waiver processing requirement and deadlines.
ASU: Student Accounts Office
Tel: (480) 965-6341
Fax: (480) 965-9242
NAU: Office of Student Financial Aid
Tel: (928) 523-4951
Fax: (928) 523-1551
Yes, as long as the student has been accepted to attend the university.
An application will be in a "pending" status if a dependent has a different last name and supporting documentation verifying the relationship of that dependent has not previously been submitted to Human Resources. Once documentation is submitted to and approved by Human Resources, the application status will be changed to "approved".
An application will be declined if:
▶ You (employee/retiree) did not meet the eligibility requirements for QTR.
▶ Responses to dependent eligibility questions did not qualify the dependent as eligible (either as a qualifying child or a qualifying relative).
If you have questions about why your application was declined, contact Diane Nelson at (520) 626-1750.
Yes, you can verify the status of your QTR application in UAccess Employee. After logging in, select Main Menu > Self Service > Educational Assistance Plan > EAP Application Review. Once your eligibility is approved, it is sent to the Bursar's Office for processing. Once processed, the student will be able to see the QTR applied in his/her student account in UAccess Student.
Yes, random audits are conducted every semester. If you are audited, you will be required to submit documentation supporting your application.
Yes. The GTS may offset any portion of the base tuition that the QTR does not cover. The GTS award will apply after the QTR goes into effect.
No. GAs who are entitled to tuition benefits through QTR must choose between the two benefit options.
The Arizona Board of Regents' Educational Assistance Plan policy states that graduate level tuition is considered exempt from taxation up to a maximum of $5,250 per tax year if used for the employee. Tuition amounts over the $5,250 amount will be taxed.
The EAP applies only toward tuition. A list of fees that are not covered by QTR is on the Bursar's website.
Spouses and dependents of employees are not eligible for EAP, therefore, tuition reduction on graduate-level courses taken by an employee’s spouse or dependent children will be fully taxed.
The tuition amount over the $5,250 EAP amount, as permitted, will be divided up and taxed over 6 pay periods. Summer QTR will be taxed over 4 pay periods. The divided tuition amount will be added to your taxable gross and you will be taxed using the tax selections you currently have set up. Depending on the taxable amount, this can affect your net pay (what you bring home).
Employees are not taxed on undergraduate tuition; under IRS regulations, graduate tuition remission is taxable. The full value of the QTR is considered taxable income for dependents or spouses of the UA employee. The taxes withheld from the employee’s paycheck will be increased to cover the taxes resulting from the value of the QTR. This is usually done shortly after the semester starts.
QTR benefits to UA affiliates are also taxable
There isn't a specific tax rate used for the QTR; it is taxed according to your income tax bracket. The amount deducted from your paycheck will depend upon your gross pay, your QTR amount, and your current tax withholdings.
Taxation starts the pay period after the last day a full tuition refund is allowed.
Bursar's Website: http://www.bursar.arizona.edu/students/dates
The Internal Revenue Service considers the QTR for graduate enrollment a taxable benefit for employees.
No, the graduate-level domestic partner tuition amount will be awarded to your domestic partner as if he or she received a scholarship through the Bursar's Office. Questions regarding this process should be directed to the Bursar's Office.
Bursar’s Office Phone Number: (520) 621-3232
If you are taxed through payroll, you will not receive a 1099 at the end of the year. Your full QTR amount will be included on your taxable gross on your W-2 form.
There are several useful websites that may help you determine the amount that will be deducted from your paycheck.
Paycheck City: www.paycheckcity.com
IRS Withholding Calculator: http://www.irs.gov/individuals/article/0,,id=96196,00.html
You will receive a 1099 form at the end of the year stating the tax liability. The QTR amount is fully taxable.
You cannot stop the taxation unless you have the QTR withdrawn.
You may change your tax withholding rate; however, you are still liable for the taxes.
To change your tax withholdings, log into UAccess Employee and follow the Self Service Menu to > Payroll and Compensation > W-4 Information or A-4 Information.
The QTR amount for graduate tuition will be added to your taxable gross. The QTR amount will not be located in a separate box. You will see the QTR amount added to your taxable gross in boxes one, three, five, and sixteen on the W-2 form.
Questions regarding 1098T will need to be referred to the Bursar's Office. You may contact them by phone or review their website.
Bursar's Office Phone: (520) 621-3232
Your QTR notice is located in UAccess Employee. Click on Main Menu > Payroll and Compensation > Qualified Tuition Reduction.
The QTR notice will include your QTR amounts per semester/session, how many pay periods the taxation will affect and the amount that will be added to your taxable gross per paycheck.
If you are the student, your QTR amount might be under the $5,250.00 EAP amount, in which case you would not be taxed. You will not receive a QTR notice if your QTR amount is not being taxed through payroll.
In updating the letters with the correct FICA tax rates for the new year, the QTR notice for prior years were deleted. If you need specific amounts, please contact the Financial Services Office.
Customer Service: (520) 621-9097
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