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Does the section labeled "other veteran assistance" indicate that i should input the direct deposit recieved from my GI bill benefits?

Could it possibly mean to report what the VA paid tp the school a second time?
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1 Reply
AmyC
Employee Tax Expert

Does the section labeled "other veteran assistance" indicate that i should input the direct deposit recieved from my GI bill benefits?

No. Your GI benefits should not be entered as they are not taxable. Your 1098-T should have your GI payments in box 5. 

 

About Publication 970, Tax Benefits for Education states: 

Example.

You have returned to college and are receiving two education benefits under the latest GI Bill: (1) a $1,534 monthly basic housing allowance (BHA) that is directly deposited to your checking account, and (2) $3,840 paid directly to your college for tuition. Neither of these benefits is taxable and you don't report them on your tax return. You also want to claim an American opportunity credit on your return. Your total tuition charges are $5,000. To figure the amount of credit, you must first subtract the $3,840 from your qualified education expenses because this payment under the GI Bill was required to be used for education expenses. You don't subtract any amount of the BHA because it was paid to you and its use wasn't restricted.

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