Do I need to report Dependents Educational Assistance (Chapter 35 DEA) received when applying for the American Opportunity Tax Credit? There is a lack of information related to this specific benefit which is different than the GI Bill. The examples for the GI Bill state any portion paid directly to the school would be reported against tuition paid, but the housing allowance paid directly to the student with no restrictions is not supposed to be reported. Those familiar with the Dependents Educational Assistance benefit know the payment is sent directly to the student and none of it to the school and essentially is the same as housing allowance by having no restrictions. It is not on reported on the 1098-T and no other tax forms record these payments. I'm hoping to find references to better understand why or why not.
