Contingent Faculty Tuition Scholarship Benefit

Beginning with the Winter 2013 semester, Contingent Faculty (as defined by the AAUP contract) may enroll in classes, including for-credit courses offered by continuing education, up to the number of credit hours they are teaching in the semester (e.g., if teaching four (4) credits in the winter semester, they may take four (4) credit in the winter semester at no charge).  In addition, these credits may be transferred to a contingent faculty member's spouse or dependent child as defined by the IRS during that semester, upon receipt and verification of the documents specified below by the Human Resources Office.

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 by the University where the University makes the decision concerning the recipient)

To Apply for the Benefit/Documents Required to Transfer Credits:

In order for these credits to be transferred to a contingent faculty member's spouse or dependent child as defined by the IRS during that semester, the contingent faculty member must initially provide the following documentation, by the first day of classes, to the Human Resources Office for the appropriate person in which they are transferring their credits to:

Spouse Biological Child Step-Child Legally Adopted Child

Marriage license

Faculty/Staff/Spouse Tuition Waiver Application

Birth certificate of child

Employee's most recent tax return

Dependent Children Tuition Program Waiver Application

 

Marriage license

Birth certificate of child

Employee's most recent tax return

Dependent Children Tuition Program Waiver Application

Proof of adoption

Employee's most recent tax return

Marriage license (if applicable)

Dependent Children Tuition Program Waiver Application

Dependent Requirements (After Initial Verification of Documents):

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 most recent federal 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 2013; updated to reflect Publication 970.