I am a full time employee at a public university. I am also a full time graduate student. I receive a reduction in tuition as an employee benefit. Since that benefit is taxable over a certain amount,

[Bsch4477 · Accepted solution]

A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following re- quirements are met.
• It is provided by an eligible educational institution.
• You are a graduate student who performs teaching or research activities for the educational institution.
You must include in income any other tuition reductions for graduate education that you receive.