Tax Information for Faculty and Staff
Compensation for Services
W-2 forms, issued by Jan. 31, summarize all income, deductions, and taxes withheld information.
Prizes and Awards
- All prizes and awards are taxable to the recipient.
- Cash gifts, prizes, and awards given to employees, including students, that are paid for by University funds will be considered gross wages. These amounts will be added to the employee’s W-2 and will be subject to federal, state, and FICA taxes.
- Non-cash gifts, prizes, and awards given to employees are subject to tax unless these items of recognition qualify as a
- "de minimis" fringe benefit,
- length of service award,
- safety achievement award, or
- retirement gift.
- Financial support to participate in non-credit events will be taxable to the recipient.
Employee Education Program
- The amount paid on the employee’s behalf is not taxable.
- Graduate expenses for the employee, up to $5,250, are tax free. Any expense above this limit is added to the employee's W-2 Form as additional taxable compensation.
- Spouses and dependents of eligible employees who meet the program requirements are eligible for a 50 percent reduction in tuition for University degree programs.
- Nontaxable for undergraduate students
- Graduate expenses are fully taxable to employee
- Reimbursement of moving (relocation) expenses may or may not be taxable.
- Nontaxable moving expenses may include packing and transportation costs of the household items, travel and lodging for the family, and storing of items for a short period.
- Standard rates for moving expense purposes are available on the IRS Standard Mileage Rate table.
- Taxable moving expenses may include all meals for all trips and house-hunting expenses. If the new employee is reimbursed at the IRS standard mileage rate, the difference is taxable.
- Taxable reimbursements will be added to the new employee’s W-2 Form, and applicable taxes will be withheld.
- For additional information, contact the travel department or payroll.
- MSPERS—Michigan State Public School Employees Retirement System
- TIAA-CREF—Teachers Insurance and Annuity Association College Retirements Equities Fund
- Publication 17—Your Federal Income Tax
- Publication 54—Tax Guide for US Citizens and Resident Aliens Abroad
- Publication 463—Travel, Entertainment, Gift, and Car Expenses
- Publication 514—Foreign Tax Credit for Individuals
- Publication 521—Moving Expenses
- Publication 590-A—Contributions to Individual Retirement Arrangements (IRAs)
- Publication 590-B—Distributions from Individual Retirement Arrangements (IRAs)
- Publication 593—Tax Highlights for US Citizens and Residents Going Abroad
- Publication 596—Earned Income Credit
- Publication 970—Tax Benefits for Higher Education
Search for Federal Tax Forms / Instructions