Dependent Children Tuition Scholarship Benefits

Dependent Children Tuition Program Application

Definition of a Child:

A child is defined as the employee’s son, step-son, daughter, step-daughter and a legally adopted child.

Students who participate in this program are not eligible to receive additional University-funded scholarships or grants. 

(University funded means any funds deposited at the University where the University makes the decision concerning the recipient.)

Dependent Requirements:

A. Children who have not attained age 24 as of the close of the calendar year.

1. The child must have the same principal place of abode as the employee for more than one-half of the calendar year.
2. The employee must provide more than one-half of his/her child’s support for the calendar year.
3. The child must be claimed as a dependent on the employee’s tax return or the tax return of the employee's divorced spouse.

B. Children age 24 or older as of the close of the calendar year.

1. The child must have the same principal place of abode as the employee for more than one-half of the calendar year.
2. The employee must provide over one-half of his/her child’s support for the calendar year.
3. The employee must provide a copy of the employee’s 1040 form, or the employee's divorced spouse's 1040 form, verifying that the child was claimed as a dependent on the most recent federal income tax filing.

Taxability of Benefit:

NMU will abide by state and federal laws regarding the taxability of benefits.

You will be taxed on the value of tuition in the year your dependent turns age 24 (or older).  For example, a dependent 24 years or older taking between 12-18 credits will create approximately $3,252* (per semester) of tax liability on your wage statement (W-2). You may wish to seek tax advice regarding the tax implications of this benefit.

*(Based on Fall 08 to Winter 09 resident undergraduate tuition.)

The information on this page is current as of January 2012; updated to reflect Publication 970.