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CMS7
Level 1

GI Bill BAH vs 529 Withdrawal

My daughter received GI Bill payments in 2020, including BAH.  We also withdrew money from her 529 plan to cover other expenses.  Do I need to enter the amount of the BAH anywhere to make sure Turbotax correctly calculates taxable earnings from the 529 withdrawal?  Specifically, I see in the Student Information Worksheet, Part VI - Education Expenses, in the column labeled Qualified Higher Education Expenses for 529 Plan, her Room and Board counts as an expense (Line 6).  However, the amount of BAH she received is not currently included in the tax-free assistance (Line 15).  This is because I didn't enter it (and I don't see a place where I should have entered it).  If I am supposed to include it somehow, can you please tell me how to enter it (in either interview or forms view)? 

2 Replies
Hal_Al
Level 15

GI Bill BAH vs 529 Withdrawal

I don't see how to enter BAH (Basic allowance for housing), either.  I don't think it would be right to just add it to Veterans benefits, as that appears to be for "qualified expenses" (tuition, fees & books).  I think what you need to do is simply reduce the amount of room and board you enter by the amount of BAH received.  This may reduce even  R & B to 0.

CMS7
Level 1

GI Bill BAH vs 529 Withdrawal

Thanks.

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