Final answer:
OU employees may be able to exclude tuition remission for undergraduate courses, and possibly for graduate courses depending on specific university policies and tax laws. Without OU's policy details, a definitive answer cannot be provided. Hence, the correct answer is option (3) Both A and B.
Step-by-step explanation:
The question pertains to whether OU employees can exclude tuition remission for undergraduate and/or graduate courses. Taxation of tuition remission can differ based on various factors including the level of the course (undergraduate vs graduate) and whether the employee meets certain criteria. The answer to this question would typically be found in the university's policy documents or the tax code relevant to the educational institution.
Under the IRS guidelines, tuition remission for undergraduate courses is generally not considered taxable income, so employees can potentially exclude tuition benefits at this level.
However, tuition remission for graduate courses might be taxable depending upon the circumstances. But without specific information from OU's policies, we cannot definitively state which options for tuition remission are excludable for their employees.