Hal_Al
Level 15

Education

You can not claim as qualified expenses anything that was "covered" by tax free benefits. It could be argued that the  BAH does not cover books, but the book stipend clearly does. 

 

Where scholarships are involved, the student can declare some of his scholarship taxable, to allow him to shift expenses to the AOTC.  You don't have that option with V.A. benefits. They are tax free and cannot be declared taxable.