Veterans Administration chapter 35 benefits. Taxable or non-taxable. Where do I input if it's needed.

I receive VA chapter 35 benefits every semester. My Father is a retired Navy Chief. I received my 1098-T from my school and when I'm doing my taxes online it asks if I receive VA benefits. When I say yes it asks me for an amount. My 1098-T says my tuition is$2880.00. Do I put that down or do I add up all my VA chapter 35 benefits and then put that number in TurboTax??? I thought VA Chapter 35 benefits weren't taxable.

Can anyone send me down a clear, and correct path???

Thank you in advance!!!

564

Expert Alumni

Feb 2, 2022 3:54:21 PM

The education questions help qualify you for Education Credits. In your case, your VA benefits are NOT taxable income, but they also cannot be used for Educational Credits. If you do not pay any tuition or other expenses, you can save yourself some grief and just skip the section.

For more information, see What Are Education Tax Credits? - TurboTax Tax Tips & Videos

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Veterans Administration chapter 35 benefits. Taxable or non-taxable. Where do I input if it's needed.