Payments & Taxability
The TGP Office must verify your child’s status for income tax purposes before approving your application. The TGP office may contact you for additional information to determine taxability of the benefit, prior to approving your application.
To view your child’s tuition payment status, navigate to the TGP portal in Axess. Then click on the red ‘Approved’ button which leads you to the screen containing the payment information. Payments will be listed towards the bottom of the screen.
Non-Taxable TGP Benefit
Generally, the TGP benefit is non-taxable and excluded from your gross income that Stanford reports to the I.R.S. for federal income tax purposes. However, your child must be claimed as your dependent on your federal income tax return for the year that includes the tuition payment date. We strongly advise parents to allow time for completion of all TGP payments for the upcoming term before making an inquiry to the school or the TGP Office. We have been issuing TGP payments for over 20 years, and are well equipped to meet all school deadlines.
- You will send a TGP Authorization Letter directly to your child’s institution.
- The school will invoice Stanford’s TGP Office, and payments will be made directly from TGP to the institution on behalf of your child.
- These payments are excluded from the employee’s gross income for federal income tax purposes and are thus tax-exempt.
- If you already paid the tuition prior to receiving your TGP Authorization Letter, we will still send the tuition payment to your child’s institution and the institution will be responsible for your reimbursement. We cannot send reimbursements to you.
If your child is 24 or older and is being claimed as a dependent on your federal tax return, a TGP Administrator may ask you to sign a Promissory Note for each tax year that the child will be utilizing the TGP program. The following year, you need to submit a copy of your taxes to TGP.
Taxable TGP Benefit
If your child is not claimed as your dependent on your federal income tax return for a particular year, TGP payments in that tax year will be reported as taxable income to the I.R.S.
- You are required to pay your child’s tuition directly to their school.
- You will be reimbursed via payroll (for active employees) or via US mail (for Stanford retirees, emeriti or beneficiaries of deceased employees).
- These reimbursements are taxed and are considered taxable income.
If the TGP benefit is changing from Taxable to Non-Taxable, a TGP Administrator may ask for a signed promissory note.
Steps for making taxable tuition payments
Follow the steps below to make the tuition payments directly to the child's institution.
- After your application is reviewed and eligibility is determined, you will be issued a taxable parent memo for your records.
When you receive the invoice from your child's institution, you are responsible to pay the tuition costs directly to the school.
To be reimbursed, please provide a copy of the itemized invoice and proof of your child's tuition payment to the TGP office.
Invoice must include: institution name, student’s name, term, itemized tuition and fees.
Proof of payment: snapshot of bank/credit card statement, or copy of cancelled check.
- Send reimbursement documentation via email, US mail, or in person:
University Human Resources
Attn: Tuition Grant Program
505 Broadway, 5th Floor
Redwood City, CA 94063
- Reimbursements for current employees will be processed within two pay periods on either the 7th or 22nd of the month, depending on the receipt date for proof of payment
Reimbursements for official retirees, emeriti or beneficiaries of deceased employees will be sent to your home address approximately 15 days after receipt date for proof of payment
Payments & Taxability
TGP Invoicing & Due Date Tips
- Although you might receive an invoice with a payment due date, most schools invoice Stanford after their add/drop period has completed.
- As long as the school has your child’s authorization letter on file, any due date quoted to you does not apply to the portion Stanford TGP will pay.
- Deduct Stanford’s portion of the invoice (tuition and mandatory fees) and pay the remaining balance only. Stanford will pay its portion timely.
- All invoices are processed in the order they are received, and schools will work with Stanford on any billing issues that may arise. Please allow up to four weeks for Stanford payment processing to complete.
Refund Process Tips
- If a refund is requested due to your child dropping out of school or leaving for medical reasons, TGP will defer to your child’s school’s refund policy.
- When we receive the refund from their school:
If we receive less than 50%, then the term is considered used.
If it's 50% or more of the TGP payment, then your child will be credited half a TGP point back to their balance.
If we receive 100% of the TGP payment, your child will be credited a full point back to their balance.
Other Important Taxability Tips
- TGP coverage does not end when your child turns 26, although the benefit may be taxable if he/she is no longer your dependent.
- If you find out you weren’t able to claim your child on your tax returns for the academic year and non-taxable tuition payments have been made by TGP, contact the TGP right away. The Stanford Payroll Department may need to make adjustments to your taxable wages.
Reimbursements Due to Tuition Overpayment
- Overpayment of tuition can occur if:
- You pay an entire invoice that includes TGP’s portion, because you were not eligible for TGP at the start of the school term, or
- You pay an entire invoice that includes TGP’s portion because of the school’s invoice due date that really only applied to your portion.
- Please note that Stanford will assist you in correcting this situation.
- If you claim your child as your dependent for tax purposes, TGP will always reimburse you via payment through the child’s school, so that you maintain the non-taxable status of the payment.
- Your child’s school accounting policies will dictate how they refund you from this credit.
Schools That Do Not Invoice Third Parties
- Not all schools will agree to invoice Stanford’s TGP directly. In that case, it is your responsibility to send us the invoice for each term so we can pay the tuition directly to the school.
- When you receive the school's invoice, simply email it to: email@example.com
- A short list of colleges that commonly do not invoice TGP directly include: Santa Clara University, University of San Diego, Carnegie Mellon University, Scripps College, Harvey Mudd College and Ohio State University.
Financial Aid Tips
- It is important to inform the school that you have TGP as a benefit
- TGP will only deduct financial aid that can only be used towards tuition costs
- Loans must be repaid so they are not considered financial aid by TGP and will not be deducted from the benefit