The information below will help you better understand tuition payments and the tax implications when using the Tuition Grant Program benefit.
For those receiving the non-taxable benefit, Stanford will send tuition payments directly to your child’s school. 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 payments were made directly to you, they would be considered taxable income.
If the TGP benefit is taxable income, you are required to pay the school and Stanford will reimburse you directly.
Tuition payments are non-taxable if your child is claimed as your dependent on your federal income tax return for the year that includes the tuition payment date. The payments are made directly from Stanford to the institution on behalf of your eligible child, once you send the Authorization Letter to your child’s institution. These payments are excluded from your gross income for federal income tax purposes.
In general, if your child is not claimed as your dependent on your federal income tax return, the benefit is considered taxable compensation and you are required to submit payments directly to the institution. You will then be reimbursed via payroll (for active employees) or via US mail (retirees, emeriti or beneficiaries of deceased employees). The TGP office may contact you for additional information to determine taxability of the benefit.
Steps for making taxable tuition payments
Follow the steps below to make the tuition payments directly to the child's institution:University Human Resources Tuition & Training Programs
3160 Porter Drive, Suite 250
Palo Alto, CA 94304
ID Mail: 8443
- After your application is reviewed and eligibility is determined, you will be issued a taxable compensation Authorization Letter
- When you receive the invoice from your child's institution, you are responsible to pay it
- Please provide a copy of the invoice and proof of your child's tuition payment to the TGP office via US mail; ID mail; email; or in person:
- 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