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Chapter 35 Benefits

When entering my 1098-T, do I need to only include the amount I paid in tuition from my Chapter 35 benefits?  Let's say that my tuition was 6000 (box 1).  I had tuition waivers/scholarships for 4000 (box 5), and I paid the remaining 2000.  Do I only enter 2000 in the "Amount from employer, GI bill, or veterans’ program" box? Or do I have to report the full stipend amount over the year?  

 
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1 Reply
MaryK4
Employee Tax Expert

Chapter 35 Benefits

No, you do not have to enter your Chapter 35 Survivors' and Dependents' Educational Assistance for your 1098-T entry.   In TurboTax, look for the "Did ____have any of these common situations in 2025?"- you can indicate that you received a scholarship. grant or other aid here.  

 

The IRS treats Chapter 35 as tax- free subsistence allowance- it is a general benefit as opposed to education-specific, so it does not have to be used specifically for Tuition or even Room & Board.  See Veterans' Benefits.  

 

[Edited 02/03/26|8:35am PST]

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