I am in a federal retraining program and they are paying for my tuition. Is that tuition reportable income?

[djholter]

The school is paid directly from the program, it's not like I get a scholarship or something. The money is out of my hands.

[MichaelMc · Accepted solution]

No. The federally paid tuition for such a program is not taxable income. However, you cannot use the value of the tuition paid on your behalf as the basis for a federal educational tax credit or deduction.

For more information about federal educational assistance, please see IRS Pub. 970 Tax Benefits for Education.