Tax Provisions

AJCU has worked extensively to maintain a number of tax provisions that have been important to our Jesuit institutions and to higher education throughout the years. By providing tax credits, deductions, and other benefits, primarily to middle class families, most of these provisions have assisted students and parents in offsetting the cost of higher education. Other provisions have benefited our institutions by incentivizing donations and by supporting research and development at our colleges and universities. For this reason, AJCU will continue to support the preservation of the following tax provisions:

Select Provision Described:

This provision excludes scholarships, fellowships, and grants (including Federal grants) from taxation when used by a student for the following expenses: tuition and fees, books, supplies, and equipment required for the courses that the student is taking. Funds from scholarships, fellowships or grants that are used for room and board, travel, research, or other expenses that are not required for enrollment or attendance at an institution, will be subject to taxation.

Furthermore, qualified tuition reductions that educational institutions provide to their employees and their families are generally excluded from income. These benefits apply to highly compensated workers only if these benefits are available to all employees on a nondiscriminatory basis. Furthermore, for graduate students, the reduction only qualifies if they are teaching or assisting in research.

View the IRS Publication 970 for more information.