Effective 1/1/2023, under Section 127 of the Internal Revenue Code (IRC, Subtitle A, Chapter 1, Subchapter B, Part III, Section 127), tuition reimbursement amounts over $5,250 in a calendar year are subject to tax. Tuition reimbursement above $5,250 in any calendar year will be paid as a taxable event with the appropriate taxes withheld and will be reported in Box 1 of your W-2 as part of your wages as required under Section 127 of the IRS Code. 

Reimbursement for Advanced Degrees in Critical Shortage Areas (Unit I only):

Unit I employees pursuing advanced degrees in designated shortage areas, as approved in advance by the Executive Director of Human Resources, shall have the option to be reimbursed the full tuition amount up to the University of Maryland graduate rate. Employees choosing this option shall incur a 4-year service requirement from the date of the completion of the program for which the tuition reimbursement is paid. The 4-year service agreement period will begin on the date the official transcript is received at Human Resources, not the date of degree conferral. If a transcript is not received in HR for completion of the program (cohort or non-cohort), the 4-year service period will not commence. This service requirement may be pro-rated or waived by the Executive Director of Human Resources under specific circumstances. Unit I members must apply for approval into the program for reimbursement for an advanced degree in a Critical Shortage Area (CSA) by completing the CSA Request for Approval form.

To be eligible for the Critical Shortage Area program, an applicant must add a new area of certification to their teaching certificate. All information requested on the form is required, including an initialed acknowledgment of each statement on the form. A short written statement of how the advanced degree program will enhance your expertise in your job must be included. A copy of the proposed program signed by the college advisor is also required.

Submit all necessary items together by mail to Certification Office - Human Resources or send scanned documents as an attachment to Email HR Certifications. After the Certification Office reviews the packet for completeness and verifies the program eligibility, the packet will be forwarded to the Executive Director of Human Resources. The employee will receive verification of the approval to include the date of approval as the Critical Shortage Area reimbursement begins only after that date of approval. All reimbursements requested prior to the approval date will be paid at the standard reimbursement rate for Unit I. Please note a Unit I employee is eligible to participate in a Critical Shortage Area program for one advanced degree. Any additional degrees, even if in a Critical Shortage Area, are eligible to be reimbursed at the Unit I negotiated rate.