Frequently Asked Questions (FAQs) regarding Qualified Tuition Reduction

Posted: May 12, 2011
Last Updated: August 3, 2011

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What is the QTR (Qualified Tuition Reduction)?
Qualified Tuition Reduction is a benefit provided to all eligible employees, affiliated participants and their spouses and dependents.

QTR information on HR Website: http://www.hr.arizona.edu/educational_benefits

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Who is eligible to use the QTR?
Qualified Tuition Reduction eligibility is extended to administrative, professional, faculty and classified staff employees who are employed at 50% or more of full time equivalence (FTE) and whose employment is expected to continue six (6) months or more; employees of affiliated units of the university; officially retired employees; spouses and dependent children of eligible employees.

Click here to review the Eligibility Guideline.

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What do I need to do to receive the Qualified Tuition Reduction benefit?
Eligible individuals will need to complete the application for Qualified Tuition Reduction/Educational Assistance Plan Form each semester/session.  The completed form must be sent to the Human Resources Department for approval and processing.

Procedures for submitting tuition reduction forms: http://www.hr.arizona.edu/files/QTR_Procedures.doc

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Where can I locate the QTR form?
The QTR form is found in the “FORMS” section of the Human Resources Website:

http://www.hr.arizona.edu/forms 

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When can I turn in the QTR?
Completed QTR/EAP forms are accepted up to three months prior to the beginning of the semester for which the tuition reduction is requested.  A submitted form does not guarantee continuation of this benefit if the employee's status changes prior to the first day of the semester.

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What is the deadline for submitting the QTR form? Updated 6/27/11
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. We are unable to accept QTR/EAP forms after these deadlines.

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Is the QTR available for employees who are seeking both graduate and undergraduate degrees? 
Yes, Qualified Tuition Reduction is available for Graduate and Undergraduate degrees.  QTR for graduate level degree programs is considered taxable income.  Please review the taxation process.

http://www.fso.arizona.edu/Payroll/taxes.htm/

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Do I need to submit a QTR for every Semester?
Yes, a separate form must be submitted for EACH semester/session.
Effective April 2011; Pre/Session, Summer I and Summer II will only require 1 QTR for all summer sessions.

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If I'm attending classes at NAU/ASU what happens to the QTR?
Human Resources at the employee’s university will verify eligibility, then the form must be turned in at the university where classes will be attended.  ASU/NAU students-please note: it is your responsibility to submit your approved QTR/EAP Form to the university you are attending.  Check your 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

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What is the difference between a qualifying child and a qualifying relative?
Section 6 on the QTR application form will explain the eligibility for a qualifying child and/or qualifying relative.

http://www.hr.arizona.edu/forms#qtr

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I'm a student and working at the university do I qualify for the QTR?
Qualified Tuition Reduction eligibility is extended only to administrative, professional, faculty and classified staff employees who are employed at 50% or more of full time equivalence (FTE) and whose employment is expected to continue six (6) months or more.

https://azregents.asu.edu/rrc/Policy%20Manual/6-902-Qualified%20Tuition%20Reduction%20Program.pdf

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I just faxed my QTR, have you received it?
Human Resources tracks all QTRs that are received by mail, fax and walk-in. During peak times please allow 48 hours before contacting Human Resources to verify receipt of the QTR Form.  Once the QTR is checked for eligibility it is taken to the Bursar's Office for processing.  The student will be able to see it in their student account on UAccess.

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My domestic partner is enrolled in classes.  Are they eligible for the Domestic Partner Tuition Program?
Yes, The University of Arizona offers a Domestic Partner Tuition Program (DPTP) to qualified university employees who have domestic partners.

http://www.hr.arizona.edu/domestic_partner_tuition_program_overview

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How much tuition will I have to pay for classes?
Located on the Bursar's Office website, under “Tuition Fees”, is a break down for those using the QTR.

http://www.bursar.arizona.edu/       

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Can I submit a QTR before I register for classes?
Yes, as long as you have been accepted as a UA student to the University.

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How long will it take for the QTR to be posted on my student account?
If you are registered for classes and tuition is posted, the QTR waiver will post once it has been entered by the Bursar’s Office.  The student will be able to see it in their student account on UAccess.

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How many courses a semester can I take while using the QTR benefit?
You may use 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.

https://azregents.asu.edu/rrc/Policy%20Manual/6-902-Qualified%20Tuition%20Reduction%20Program.pdf

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Does the $5250 EAP go towards fees such as recreation fees or program fees?
You may find a list of fees that are NOT covered by QTR on the Bursar's website.

http://www.bursar.arizona.edu/students/qtr

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Does the QTR cover courses taken through the Outreach College?
Correspondence courses identified by each university are included in the QTR policy.  You can contact the Outreach College directly regarding which programs are excluded.

Outreach Programs: 520-621-8632

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My tuition amount is higher than what it usually is or what I expected.  What could be causing this?
You may have been reclassified as a non-resident.  You may want to check your residency classification by contacting the UA Residency Classification team.

UA Residency Classification Phone: 520-621-3636
Website: http://registrar.arizona.edu/residency/residenc.htm

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What is the Educational Assistance Plan?
The Arizona Board of Regent's 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. 

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Will I be taxed on my domestic partner's graduate level Qualified Tuition Reduction amount?
No, the graduate level Domestic Partner Tuition amount will be awarded to your domestic partner as if they received a scholarship through the Bursar's office.  Questions regarding this process should be directed to the Bursar's Office.

Bursar’s Phone Number: 520-621-3232

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When will the taxation start?
Taxation starts the pay period after the last day for a full refund date. You can find this date on the Bursar's website. You will receive notification of the taxation by receiving a QTR letter from UAccess.

Bursar's Website: http://www.bursar.arizona.edu/students/dates

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What is the tax rate for QTR taxation?
There isn't a specific tax rate used for the QTR.  The amount deducted from your paycheck will depend upon your gross pay, your QTR amount, and your current tax withholdings.

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My spouse and/or dependent is taking graduate level courses and I did not receive the Educational Assistance Plan exempt amount of $5,250.  Why not?
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).

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How does my employer tax me on my QTR amount over the $5,250 exempt amount?
The tuition amount over the $5,250 EAP amount, as permitted, will be divided up and taxed over six (6) pay periods.  Summer QTR will be taxed over two (2) 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). 

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Will I receive a 1099 at the end of the year for my QTR amount?
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.

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Where can I get an idea of the amount that will be deducted from my paycheck so that I can prepare for it?
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

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I am an affiliate and I am using the QTR benefit.  How will I be taxed?
You will receive a 1099 form at the end of the year stating the tax liability.  The QTR amount is fully taxable. 

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Can I remove or cancel the QTR amount if I cannot afford the taxation?
You cannot stop the taxation unless you have the QTR withdrawn. 

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Can I change my tax withholdings so that I receive a paycheck and pay the liability when I file my taxes for the year?
You may change your tax withholdings however; you are still liable for the taxes.

Log into UAccess and follow the Self Service Menu to > Payroll and Compensation > W-4 Information or A-4 Information. 

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Is there a separate box on the W-2 form that shows the QTR amount that I used?
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.

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Why did I receive a 1098T with the full Qualified Tuition Reduction amount if I was already taxed on this amount through payroll?
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
Website: http://www.bursar.arizona.edu/

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Where can I obtain my QTR notice?  Will it be mailed to me?
Your QTR letter will be located in UAccess.  

Please follow the Self Service Menu to > Payroll and Compensation > Qualified Tuition Reduction.

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What information will the QTR notice include?
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.

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What should I do if I do not receive a notice?
If you are the student, your QTR amount might be under the $5250.00 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.

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Can I use my GA benefits and a QTR? Added 8/3/11
Yes, you can use both types of support. These types of aid must be coordinated manually so you may not see the GA benefits applied right away. Contact the Graduate College about a month after the start of the semester if you do not see your GA benefits applied in full.

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Is the value of the QTR taxable? Added 8/3/11
The full value of the QTR is considered taxable income if you are the dependent or spouse of the UA employee. The taxes withheld from the faculty/staff employee’s paychecks will be increased to cover the taxes resulting from the value of the QTR. This is usually done shortly after the semester starts.

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I am QTR-eligible and have been awarded a Graduate Tuition Scholarship (GTS). Can I use it and the QTR? Added 8/3/11
No. You will need to consult your Graduate Coordinator and/or the Graduate College to decide which type of support is right for your particular situation. The QTR is the default support and will cover all eligible charges. The GTS will only cover any unpaid tuition, usually only $25.00 for employees or spouses. The only way to use the GTS is to cancel the QTR but this might leave you owing more than just tuition. QTRs cover program fees and GTS awards do not.

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What happened to my prior year’s notice?

Since 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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CONTACT PHONE NUMBER:

 

Questions?	Department	Phone Number
QTR eligibility	HUMAN RESOURCES	520-621-3662 (Option 3)
Student account information	BURSAR’S OFFICE	520-621-3232
QTR taxation and notice	FINANCIAL SERVICE OFFICE	520-621-9097
Residency classification	UA RESIDENCY CLASSIFICATION	520-621-3636
Correspondence Program Eligibility	OUTREACH COLLEGE	520-621-8632