Page 5-7 of the text mentions qualified tuition reduction plans under which an educational institution may reduce or pay the tuition for its employees, and the employees will not be taxable on the assistance.

What criteria are used to determine whether the employer qualifies to provide nontaxable qualified tuition reductions or payments under such a plan?

Which individuals may receive the nontaxable qualified tuition reductions or payments?

Are there circumstances in which a tuition reduction or payment made by a qualifying employer for a qualifying individual will nevertheless be taxable to the employee? If so, describe these circumstances.

Please answer each question in complete sentences, and cite the title and number of the IRS publication or form/instruction where you found each answer, and the page number on which the answer is found. Use your own words in the answer do not copy the IRS language.