USC’s Tuition Assistance Benefit (TAB) program provides the opportunity for you or your family to advance your education. Full-time benefits-eligible faculty and staff can pursue their studies at USC 100% tuition-free (50% for KCMG employees). The program also provides 100% tuition (50% for children of KCMG employees) for children seeking undergraduate degrees, and 25% tuition for spouses/registered domestic partners.
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TAB Plan documents
Please review the USC Tuition Assistance Benefit Plan document in full prior to applying.
If you or your dependent were receiving tuition assistance benefits as of Spring 2025, please visit the FAQ on how your benefits vary from the above updated plan. In the event of a discrepancy between the plan document and the information provided here, the plan document will govern.Who is eligible
Employees
include 100% full-time, benefits-eligible staff employees and faculty members employed by the university.
Dependents
of eligible employees include legally married spouses, health plan eligible registered domestic partners, and biological, adopted, and stepchildren under the age of 26. Stepchildren must be the biological or adopted child of an eligible spouse or registered domestic partner.
Children of former employees
include biological, adopted, and stepchildren under the age of 26 whose sponsoring former employee was hired prior to July 1, 2011, reached 15 years of benefits-eligible service and received their 15-year Service Provision letter.
Service Requirements
For staff hired after January 1, 2019
Staff employees hired after January 1, 2019 must complete two years of service prior to receiving tuition assistance for themself or their dependents, and staff who utilize TAB for themself must remain actively employed and eligible for 2 years after graduation or their last day of study to avoid having to repay tuition.
For faculty
Faculty have no service requirements to receive TAB and are eligible as of their first day of employment.
What are you eligible for
Employees
- may receive up to 100% tuition assistance (50% for a KCMG Eligible Employee) for a maximum of six (6) undergraduate or four (4) graduate units per semester towards one (1) undergraduate degree and unlimited graduate degrees.
- Faculty may only utilize TAB for post-graduate studies.
- Eligible employees are also able to utilize TAB for job-related course audits not for credit.
Children
may receive 100% tuition assistance (50% for an Eligible Child of a KCMG Eligible Employee) for one undergraduate degree program, up to a maximum of 144 undergraduate units, whichever comes first.
Spouses or Eligible Registered Domestic Partners
may receive 25% tuition assistance for a maximum of one degree program (undergrad, graduate, or progressive), up to a maximum of 144 undergraduate or 72 graduate units, whichever comes first.
The TAB program does not cover non-tuition expenses or fees.TAB application journey
To pursue a USC degree
To begin the TAB application process, you must first apply to an eligible USC program. Once you are officially admitted, congratulations! You are now ready to apply for the TAB program by following these three steps:
1
Read the TAB plan and download and sign the Acknowledgement
The acknowledgment form certifes you understand the terms of use.
2
Gather supporting documents to submit with application
- All Applicants – USC TAB Acknowledgement form
- Dependents utilizing TAB – State-issued marriage license, domestic partnership registration, and / or birth certificate
- Dependents of former employees who met 15-year Service Provision – Service Provision Letter
3
Complete the application
at least thirty (30) days in advance of the first day of classes.
To take a job-related course
Employees may also take one course for audit, per semester which has been defined as work-related and approved by their supervisor. Follow the steps to apply.
1
Register as a limited-status student
Employees must register as limited-status student (not in a degree program) with a grade option for audit only. Register at the Registrar’s office in the lobby of JHH.
2
Gather the supporting documents and apply
- Download and fill out the Limited Status form
- The employee must obtain a letter from their manager or supervisor indicating how taking this course will enhance their job skills.
- USC TAB Acknowledgement form
3
Complete the application
The application must be complete within at least 30 days of the first day of classes
What’s next
The University HR TAB team will review your application. If your application is approved and your tuition assistance is authorized, you will need to complete forms related to taxation and ensure the student is reviewing their benefit statements sent every Spring and Fall Semester.
If you are approved for TAB, you do not have to reapply every school year, unless there is a break in enrollment.Submit Payroll Certification Forms
To avoid unnecessary taxation, certification forms must be submitted to Payroll Services (payroll@usc.edu) throughout the course of study. If the forms are not completed, all tuition assistance will be considered taxable and reportable income.
For dependents in undergraduate programs, a University Tax Dependent Certification must be submitted at time of application and at the start of every calendar year the dependent is receiving TAB.
For employees in graduate programs, a University Graduate Coursework Certification must be submitted to Payroll Services (payroll@usc.edu) prior to the start of every term they are taking graduate courses.
Review your Benefit Statement to track plan usage
Every spring and fall semester, a Benefit Statement detailing plan usage will be sent to the student utilizing TAB. This statement will include important information, including coverage amounts and any upcoming unit or age caps, helping students understand any potential tax impacts and track their remaining TAB eligibility.
Employees with dependent TAB recipient(s) will not receive a statement of use for their sponsored dependent(s) as it includes FERPA-protected data.
Things to consider
Benefits under the TAB plan are intended to be tax-exempt when possible under IRS Code sections 117(d), 127 or 132(d) (as applicable).
Nonetheless, many benefits provided under the TAB Plan are taxable income based on the student’s relationship to the employee (dependent or self) and whether they are pursuing an undergraduate or graduate program.
Current Employees
Employees taking graduate courses: TAB Plan benefits in excess of $5,250 (per calendar year) provided to employees enrolled in a graduate program are considered taxable and reportable income unless their manager certifies that the coursework is job-related.
For situations where Tuition Assistance is considered taxable and reportable income, the gross amount of the benefit will be divided into three portions, added to the employee’s monthly pay or six portions for biweekly pay and taxed accordingly. This may significantly affect net pay in the applicable months. See the tax schedule below:
Tuition assistance tax schedule
- Fall semester – taxed October, November and December
- Spring semester – taxed February, March and April
- Summer sessions – taxed July, August and September
Former Employees
Former employees who received their 15-year Service Provision Letter: Undergraduate Tuition Assistance for dependent children is considered taxable and reportable income unless the former employee retired at or after age 55, or terminated employment because of permanent disability. In all circumstances, graduate coursework is taxable.
Note that all certification forms, as well as any questions regarding taxation of the tuition assistance benefit, should be directed to payroll@usc.edu.
Employees are responsible for immediate payment to the university of any prorated amount of Tuition Assistance if a post-registration audit reveals that their employee status changed during the term they received the benefit; if it is found that any Tuition Assistance was applied to ineligible tuition or fees; or if the maximum allowed units was exceeded.
Please note that the first and last day of classes in any session, including summer courses, is defined by the university’s academic calendar.
- Service Requirement: Staff hired on or after January 1, 2019 must complete two years of eligible service prior to accessing the benefit and if using the benefit for themself, must remain an eligible employee for 2 years after completion of studies to avoid having to repay tuition.
- Actively at Work Requirements (Leaves)
For an Eligible Employee to receive tuition assistance, the Eligible Employee must be actively at work as determined by the university. An Eligible Employee who commences a Leave of Absence mid-semester/session is permitted to finish any coursework in which the Eligible Employee is enrolled when the Leave of Absence commences but will not be eligible for any further tuition assistance until the Eligible Employee returns to work. An Eligible Dependent of an otherwise Eligible Employee who is not actively at work remains eligible for tuition assistance under the TAB Plan throughout the leave.
In all cases and under every circumstance, Tuition Assistance is strictly limited to tuition payments and does not cover room, board, books, any additional fees, or any other expenses associated with a degree program.
Student Health Insurance Fee
All USC students who enroll in six credits or more are automatically charged a Student Health Insurance fee. This fee can be waived simply by proving that you already have adequate health insurance coverage.
Other tuition awards/scholarship(s) may be combined with the TAB program. Please work with the USC’s Financial Aid office to determine the best financial aid package for you.