Q. So just want to verify...the stipend my granddaughter receives from the VA does not need to be reported on her taxes?
A. That's correct. It's tax free, even though it's used for living expenses. VA stipends are not treated as scholarships
Q. She also does not have to reduce the amount of tuition, in box 1 of the 1098-T, that she can claim for the American Opportunity Credit because of the VA stipend?
A. That's correct.
