Navigating Tax Exemptions and Waivers at UCF: A Comprehensive Guide

Understanding tax exemptions and tuition waivers is crucial for students, employees, and other individuals associated with the University of Central Florida (UCF). This article provides a detailed overview of various exemptions and waivers available at UCF, ensuring clarity and accessibility for a wide range of audiences, from prospective students to seasoned professionals.

Tax Implications of Educational Benefits

It is important to understand the tax implications of educational benefits. If your employer pays more than $5,250 for educational benefits for you during the year, you must generally pay tax on the amount over $5,250. Your employer should include in your wages (Form W-2, box 1) the amount that you must include in income.

Tuition Waivers for UCF Employees

UCF offers tuition waivers to eligible employees, fostering professional development and educational opportunities. Full-time UCF employees classified as Faculty, Administrative and Professional (A&P), University Support Personnel System (USPS), and Post Doctoral Scholars on Sabbatical, undergoing professional development, using grants-in-aid, or on medical and educational leave; who are employed in an established full-time position with a 1.0 FTE on the date fees are due, are eligible for a waiver of tuition and fees as defined in the FL Statutes, Title XLVIII, K-20 Education Code, Chapter 1009 Educational Scholarships, Fees, and Financial Assistance, Section 26 Fee waivers, (1009.26(3)).

Eligible employees may enroll for up to six (6) credit hours of eligible instruction per Fall, Spring and/or Summer terms without payment of tuition and fees on a space-available basis per semester or session, beginning at the date and time specified in the Academic Calendar. Registration activities completed before the employee registration window may result in the waiver being deemed ineligible for use. The tuition waiver cannot be used for courses that have increased costs. Any UCF employee who uses an Employee Tuition Waiver for approved courses must submit a completed and signed tuition waiver form to Student Account Services by or prior to each term’s Fee Payment Deadline. See the Academic Calendar for each term’s Fee Payment Deadlines. Prior to enrolling into courses each term, refer to the Human Resources Web site for eligibility requirements, course restrictions, and the Employee Waiver Form. Students are encouraged to list alternate courses on the waiver form to substitute for preferred courses that are closed. Waived amounts above the I.R.S.

Dependent and Spouse Tuition Waivers for UCF Employees

Full-time UCF employees who are classified as Faculty, Administrative and Professional (A&P), University Support Personnel System (USPS), and Post Doctoral Scholars on Sabbatical, undergoing professional development, using grants-in-aid, or on medical and educational leave; who are employed in an established full-time position with a 1.0 FTE on the date fees are due, are eligible for a dependent or spouse tuition waiver benefit. Registration activities completed before the employee registration window may result in the waiver being deemed ineligible for use. The tuition waiver cannot be used for courses that have increased costs. Spouses and dependents must submit a completed and signed Tuition Waiver Form to Student Account Services by each term’s Fee Payment Deadline. See the Academic Calendar for each term’s Fee Payment Deadlines. Prior to enrolling into courses each term, refer to the Human Resources Web site for eligibility requirements, course restrictions, and the UCF Tuition Waiver Benefit Program Contingent Tuition Waiver Transfer Form. Both the UCF employee and spouse/dependent must sign and date the form. Students are encouraged to list alternate courses on their waiver form to substitute for preferred courses that are full. The University Waiver Liaison is Philomene Dorlus.

Tuition Waivers Based on Academic Programs and Roles

UCF provides tuition waivers for specific academic programs and roles, encouraging participation and excellence in key areas.

Certificate of Participation (COP)

A Certificate of Participation (COP) may be issued to persons who supervise student interns for a state university. The holder of a certificate is entitled to receive an exemption of the hourly rate for up to six (6) credit hours during one term of instruction at a state university for undergraduate and graduate level courses.

Child Protection and Child Welfare Personnel Tuition Exemption Program

Students who are employed as child protection and child welfare personnel as defined in the Florida Statutes, Title XXIX, Public Health, Chapter 402 Health and Human Services: Miscellaneous Provisions, 402.403 Child Protection and Child Welfare Personnel Tuition Exemption Program, are eligible for a tuition and fees exemption for up to six (6) credit hours per term in a master’s degree in social work or certificate program. All child protection and child welfare personnel who participate in the tuition exemption program established under this section must remain employed by the department, a state agency, or a contracted provider for 5 years after completion of a graduate level social work program.

School Psychology Program

Graduate students in a state-approved school psychology program of study are entitled to a waiver of tuition and fees associated with internship credit hours, as defined in the FL Statutes, Title XLVIII, K-20 Education Code, Chapter 1009 Educational Scholarships, Fees, and Financial Assistance, 1009.26(5) Fee Waivers. The School Psychology Program Coordinator will inform Student Account Services of each term’s recipients. Recipients of this waiver will have all tuition and fees waived if the internship is the only course registered. Students must pay tuition and fees for all other registered courses by the Fee Payment Deadline.

Programs of Strategic Emphasis Waiver Program

The Programs of Strategic Emphasis Waiver Program was created by the Florida Legislature and took effect in the Fall 2021 semester. The tuition waiver is applicable for 110 percent of the required credits of the baccalaureate degree program for which the student is enrolled. Students are not required to apply or request this tuition waiver. The waiver covers 50% of the tuition and fees for eligible upper-level undergraduate (3000/4000 level) courses required for your approved program of study. The tuition waiver is applied after gift aid, and it will only cover any remaining eligible tuition charges at 50%. The tuition waiver will not result in a refund if gift aid (such as scholarships, grants, third party payments, etc.) has already covered the full cost of tuition and fees. If gift aid does not cover the full cost of tuition, the waiver will only cover 50% of the remaining tuition balance after gift aid is applied.

Read also: Student Requirements Explained

Fee Waivers Based on Military Service and Veteran Status

UCF demonstrates its commitment to military personnel and veterans through several fee waiver programs.

Purple Heart and Combat Decoration Recipients

Florida resident military personnel who were awarded a Purple Heart or another combat decoration superior in precedence are eligible for a tuition waiver as defined in the FL Statutes, Title IXLVIII, K-20 Education Code, Chapter 1009 Educational Scholarships, Fees, and Financial Assistance, 1009.26(8) Fee Waivers. In order to receive this benefit, students must submit their DD-214 form issued at the time of separation from service as documentation that a Purple Heart or another combat decoration superior in precedence was received to the Office of Military and Veteran Student Success on or before the Tuition and Fees Payment Deadline(s) on their first term.

Honorably Discharged Veterans

Students who are honorably discharged veterans and physically reside in the state while enrolled are eligible for an out-of-state fees tuition waiver as defined in the Florida Statutes, Title XLVIII Early Learning-20 Education Code, Chapter 1009 Educational Scholarships, Fees, and Financial Assistance, 1009.26(13) Fee Waivers. In order to use this benefit, students must submit their DD-214 form issued at the time of separation from service as documentation to the Office of Military and Veteran Student Success for review and approval.

Deceased Military Member Benefits

A maximum of 120 credit hours in an authorized undergraduate or postgraduate education may be covered for spouses and dependent children (under 25). Spouses must request to use the benefit within 5 years after the death date of the officer and may continue to receive the benefit until the 10th anniversary. A maximum of 120 credit hours in an authorized undergraduate education or a postgraduate education may be waived for dependent children under 25. To qualify for the tuition exemption benefit, the deceased military member must have been a resident of the state of Florida, or his or her duty post must have been within the state of Florida, at the time of death. A maximum of 120 credit hours in an authorized undergraduate or postgraduate education may be covered for spouses and dependent children (under 25). Spouses must request to use the benefit within 5 years after the death date of the officer and may continue to receive the benefit until the 10th anniversary.

Waivers for Non-Resident Fees

UCF offers several waivers for non-resident fees, increasing accessibility for out-of-state students under specific conditions.

Grandparent Waiver

Beginning with the 2022-2023 academic year, the state university Grandparent Waiver was created by the Florida Legislature to allow a limited number of out-of-state students with a grandparent who is a legal Florida resident as defined in the Florida Statutes to attend a state university and have non-resident fees waived.

International Linkage Institutes

The Florida Legislature has established 11 International Linkage Institutes as defined in the Florida Statutes 288.8175. According to statue 1009.21, students who qualify will be eligible for non-resident tuition fee waivers. The Linkage Institutes notifies the students that they are certified to receive an out-of-state exemption/waiver. The student must submit the award letter to Student Account Services prior to the Fee Payment Deadline each term and pay any remaining fees by the Fee Payment Deadline. See the Academic Calendar for the Fee Payment Deadline. The letter is very specific and it will state the terms, program of study and the number of hours that the award covers.

Out-of-State Tuition Waiver for Eligible Students

Non-resident students who are not U.S. citizens or lawfully present in the United States and meet the following conditions, are eligible for a waiver of out-of-state tuition and fees as dictated by F.S. 1009.26(12)(a): Have attended a secondary school in Florida for three (3) consecutive years immediately before graduating from a high school in this state; have applied for enrollment in an institution of higher education within 24 months after high school graduation; and who submit an official Florida high school transcript as evidence of attendance and graduation.

Reciprocal Student Exchange Program

The “Reciprocal Student Exchange” is a program in which degree-seeking students from UCF attend a foreign partner university in exchange for students from the partner university attending UCF. Participants must stay registered at their university of origin (home institution).

Dual Enrollment/Early Admissions Program

Additional information regarding the Dual Enrollment/Early Admissions Program is available online through the Undergraduate Admissions Office. Students eligible for this program are exempt from paying tuition and applicable fees. A veteran as defined in s.

Senior Citizen Audit Program

Persons 60 years of age or older who meet Florida Residency requirements may register only to audit classes without payment of tuition and application fees as defined in the FL Statutes, Title XLVIII, K-20 Education Code, Chapter 1009 Educational Scholarships, Fees, and Financial Assistance, 1009.26(4) Fee Waivers. Registration is on a space-available basis and occurs on the last day of regular registration, at the time specified on the Academic Calendar for each term. The Registrar’s Office personnel are responsible for verifying senior citizen status, residency and eligibility for enrollment in the requested courses, as well as enrolling senior citizens in the classes. Then the Registrar’s Office staff delivers the Senior Citizen Audit Registration Forms to Student Account Services for waiver processing by the Fee Payment Deadline each term.

State Employee Tuition Waivers

Full-time state employees who meet academic requirements are entitled to a waiver of tuition and fees as defined in the FL Statutes, Title XLVIII, K-20 Education Code, Chapter 1009 Educational Scholarships, Fees, and Financial Assistance, 1009.265(1-5) Fee Waivers. State employees are any individuals who work in any of the State of Florida agencies (i.e. Department of Corrections, Department of Children and Families, Department of Transportation etc.). State University employees as well as educators of the different counties of the state are not state employees. The tuition waiver cannot be used for courses that have increased costs. Any state employee who uses an Employee Tuition Waiver for approved courses must submit a completed and signed tuition waiver form to Student Account Services by or prior to each term’s Fee Payment Deadline. See the Academic Calendar for each term’s Fee Payment Deadlines. To view a complete set of instructions, employees may obtain the “State Employee Tuition Waiver Form and Instructions” from the Registrar’s Office Web site. Students are encouraged to list alternate courses on the waiver form to substitute for preferred courses that are closed. Waived amounts above the I.R.S.

Sales Tax Exemption

Every person who engages in selling, renting, or licensing tangible personal property and certain services in Florida is exercising a taxable privilege. Transactions are not exempt from sales tax unless expressly exempted by statute. Sales tax should be charged in addition to the selling price and reported separately on the receipt. A purchaser must provide a valid copy of their Florida Consumer’s Certificate of Exemption (Form DR-14) in order to be exempt from sales tax. A copy of the organization’s IRS Determination letter confirming 501(c)(3) status is not acceptable for exempting a sale from Florida sales tax. Tax exempt purchases must be made with the purchasing entity’s funds and may not be made with the personal funds of the purchasing entity’s authorized representative. The department should retain either a physical or digital copy of the customer’s exemption certificate for a minimum of six fiscal years.

Communication Service Tax

Anyone who engages in the business of selling communication services at retail in Florida is exercising a taxable privilege. Communication services include telecommunications, video, direct-to-home satellite, and related services. This definition includes voice, data, audio, video, or any other information or signals transmitted by any medium. As of July 1, the total Florida Communication Service Tax rate is 7.44%, in addition to a city/county rate that varies by location.

Tourist Development Tax

In addition to Florida sales tax, Tourist Development Tax is due on the total amount paid by a guest for the rental or lease of living quarters or accommodations in a hotel, motel, house, trailer camp, condominium, apartment, multi-unit structure, mobile home, trailer, single family home, or any other sleeping accommodations that are rented for a period of six months or less.

Texas Business Registration

The university is no longer registered to do business in the state of Texas effective 12/31/2021.

Medicare Tax

Medicare tax will be deducted from an employee’s paycheck in the amount of 1.45% based on the total taxable gross amount.

FICA Exception for Students

The University provides assistantships for graduate assistants to gain research and/or teaching experience as part of their education toward a graduate degree. The Graduate Catalog provides definitions for determining full-time status of a graduate student. In any given term, graduate students are considered full-time when they are registered for 9 hours in Fall and Spring terms, and 6 hours in Summer terms, or 3 hours of thesis or dissertation regardless of term. Students must be “scheduled” to work less than 30 hours per week in order to have FICA exception. A schedule is determined by the employing department and loaded into the Workday system. Failure to meet the above criteria will result in the student paying Social Security (6.20%) and Medicare (1.45%) tax on the taxable gross paid for the pay period. Keep in mind that graduate students are limited in the number of hours they may work by Graduate Studies. In some cases, a Supplemental Assignment Form is required. The Student Financial Assistance Employment Manual and Undergraduate Catalog provide definitions for determining full-time status of an undergraduate student. In any given term, undergraduate students are considered full-time when they are registered for 12 hours in Fall, Spring, or Summer terms. Students must be “scheduled” to work less than 30 hours per week in order to have FICA exception. A schedule is determined by the employing department and loaded into the Workday system. Failure to meet the above criteria will result in the student paying Social Security (6.20%) and Medicare (1.45%) tax on the taxable gross paid for the pay period. In 2004 and 2005, changes in FICA exception for students were made by the Internal Revenue Service.

Federal Withholding Tax

All employees are subject to federal withholding tax based on the way the W-4 Card is completed. *Please note: UCF does not withhold state income tax. One exception allowed for not paying federal withholding tax relates to employees who are from a country which shares a tax treaty with the United States. Certain conditions must be met and UCF, as the withholding agent, reserves the right to deny a tax treaty benefit based on information obtained. The second exception allowed is when an employee claims exemption from withholding and certifies that he or she has met all of the conditions for exemption stated on the W-4 Form.

Fringe Benefits

The importance of contacting either the Tax Department or our Fringe Benefits compliance partner, the Human Resources Payroll Department, prior to providing any benefits cannot be overemphasized. Fringe benefits are a form of payment, generally in exchange for the performance of services. All fringe benefits provided to employees are considered taxable, unless a specific exclusion applies. Due to the complexities involved with providing fringe benefits, we recommend that any departments providing fringe benefits to employees contact the Tax Department or Human Resources Payroll Department prior to providing any benefits. The below list is not intended to be comprehensive, it is only a sampling of common examples of fringe benefit categories provided by universities.

Lifetime Learning Credit and Scholarships

You may be able to increase your lifetime learning credit when the student (you, your spouse, or your dependent) includes certain scholarships or fellowship grants in the student’s gross income. Your credit may increase only if the amount of the student’s qualified education expenses minus the total amount of scholarships and fellowship grants is less than $10,000. If this situation applies, consider including some or all of the scholarship or fellowship grant in the student’s income in order to treat the included amount as paying nonqualified expenses instead of qualified education expenses. Scholarships and fellowship grants that the student includes in income don’t reduce the student’s qualified education expenses available to figure your lifetime learning credit. Thus, including enough scholarship or fellowship grant in the student’s income to report up to $10,000 in qualified education expenses for your lifetime learning credit may increase the credit by enough to increase your tax refund or reduce the amount of tax you owe even considering any increased tax liability from the additional income. However, the increase in tax liability as well as the loss of other tax credits may be greater than the additional lifetime learning credit and may cause your tax refund to decrease or the amount of tax you owe to increase. The scholarship or fellowship grant must be one that may qualify as a tax-free scholarship under the rules discussed in chapter 1. Also, the scholarship or fellowship grant must be one that may (by its terms) be used for nonqualified expenses. Finally, the amount of the scholarship or fellowship grant that is applied to nonqualified expenses can’t exceed the amount of the student’s actual nonqualified expenses that are paid in the tax year. The fact that the educational institution applies the scholarship or fellowship grant to qualified education expenses, such as tuition and related fees, doesn’t prevent the student from choosing to apply certain scholarships or fellowship grants to the student’s actual nonqualified expenses. By making this choice (that is, by including the part of the scholarship or fellowship grant applied to the student’s nonqualified expenses in income), the student may increase taxable income and may be required to file a tax return. Parents or students claiming either credit should receive a Form 1098-T, Tuition Statement, from their educational institution.

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