Are tuition subsidies taxables for research staff? I have two Bachelor degrees and an MMath, not looking for any more degrees at this time, but I might be interested in taking some Japanese and Chinese language courses.

I'm working as a research programmer for a university in the US (IU), and they offer the option of 


  a subsidy toward the tuition costs, under Section 117 of the Internal Revenue Code.


What does this mean for me?


Would such subsidy be included in my income, and would I have to cover for the taxes as if I have received all such subsidies as real money in income?
What happens to the in-state / out-of-state tuition differential?  I've moved from a different state for this job mid-summer, and might start taking courses right away in autumn.
I am not a Lawyer or Accountant, and if you really worry, you should ask one of those or at the very least talk to human resources at your university. 

But, based on my reading of the relevant law, part (d) [usually referred to, I guess, as Section 117-4] specifically states that if you are an employee of a university, then tuition reduction for you to take classes at said university should not count toward your gross income when calculating taxes. 

The US code does not distinguish between in-state / out-of-state tuition. 

Caveat: your local state laws may have different interpretation of "gross income".