Money from the GI Bill is not earned income.
If you're a service member or a veteran with an honorable discharge, the GI Bill may provide funding to help with college costs. The benefits can add up to thousands of nontaxable dollars that you do not have to report as income on your individual income tax return (Form 1040).
If you are not a full-time student, then you made too much money to be claimed as a dependent.
See the rules for Qualifying Child
- Are they related to you? The child can be your son, daughter, stepchild, eligible foster child, brother, sister, half brother, half-sister, stepbrother, stepsister, adopted child, or an offspring of any of them.
- Do they meet the age requirement? Your child must be under age 19 or, if a full-time student, under age 24. There is no age limit if your child is permanently and totally disabled.
- Do they live with you? Your child must live with you for more than half the year, but several exceptions apply.
- Do you financially support them? Your child may have a job, but that job cannot provide more than half of her support.
- Are you the only person claiming them? This requirement commonly applies to children of divorced parents. Here you must use the “tie-breaker rules,” which are found in IRS Publication 501. These rules establish income, parentage, and residency requirements for claiming a child.
