My daughter is in college and receives what is known as CSDDV, from the Florida VA. It covers her college tuition. I had been told, in a previous forum, like this, that VA benefits are not considered taxable, but I'm pretty sure when the university provided the1098-T form that showed her scholarships, grants and college expenses, they included this amount. Because of this, it showed that she received more income than her college expenses and it went from her receiving a refund to owing. Should this have happened? Should the CSDDV been excluded from from the scholarships and grants?
Additionally, in a separate place on her tax form, it asked if she receives VA benefits not listed anywhere else. She also receives Chapter 35 VA benefits from the national VA, which she listed in this section. Should she have? Did this potentially impact her receiving a return vs. owing?
