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angry100
New Member

When Turbo Tax asks if I received Veterans Education Benefits, do I include the Work Study money or just the GI Bill money?

 
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KrisD
Intuit Alumni

When Turbo Tax asks if I received Veterans Education Benefits, do I include the Work Study money or just the GI Bill money?

If the work study went to you, and not to pay for education, do not include that amount.

According to the IRS:

"Veterans' Benefits Payments you receive for education, training, or subsistence under any law administered by the Department of Veterans Affairs (VA) are tax free. Don't include these payments as income on your federal tax return. If you qualify for one or more of the education tax benefits discussed in chapters 2 through 12, you may have to reduce the amount of education expenses qualifying for a specific tax benefit by part or all of your VA payments. This applies only to the part of your VA payments that is required to be used for education expenses. You may want to visit the Veterans Administration website at www.gibill.va.gov for specific information about the various VA benefits for education. 

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."

https://www.irs.gov/pub/irs-pdf/p970.pdf



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