The Post 9/11 GI Bill is suppose to be non-taxable/non-claimable. Do I still have to claim the benefits for education expenses on my taxes?

  • I receive 1563.72 a month for my mongumery go bill to I add this
  • I received a 1098-T form and in the 1 box (payments received for qualified tutituon & related expenses) is an amount. Do I add that in to my taxes if all of it was paid by the VA...
  • My daughter receives VA benefits monthly for attending school full time through her dad's VA benefits.  She receives this directly and does not go through the school.  Does this need to be reported?
  • you do not add any housing allowances . Only enter what the GI paid for in College tuition.
  • Should the book allowance be added as educational assistance?
  • No, according to the VA website  
    http://www.gibill.va.gov/resources/benefits_resources/rates/CH33/Ch33rates080112.html#BOOKS

    Book money is a stipend, that means it is the same as the housing allowance (ie, non taxable free money ).  I do not report either one.  I go to my financial records from my school and look for "Chapter 33 ACH Payment" lines on the Spring and Fall 2012 statements.  This is what VA paid to my school.  This is the ONLY GI bill related information I put on the tax forms.  Julst like Kristinasumer said above.

    Retired MSGT (E-7) USAF
  • DO I ADD THE AMOUNT THEY PAY FOR SCHOOL
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No. Don't claim anything that was paid for with GI bill. Most likely, you won't be mentioning education at all.
  • does that go for the post 9/11 too? im confused...
  • If you used GI Bill $ to pay for Qualified Education Expenses, you have nothing to report. It's non-reportable, non-taxable when used for intended purpose.

    If you get a 1098-T from the school, it should indicate portion of tuition paid with GI bill. You can only claim any out-of-pocket expenses not covered.
  • im not seeing anything on the 1098-T about VA or GI bill...
  • It won't name Source of payment, just that bills were paid.
  • I agree with kristinasumer84... it is VERY confusing. ours has an amount in box 2, of which the VA paid most and I paid a small amout of too.
  • tmetzgar,

    Do you claim the small amount you paid? Like when the question came up, "Did (your name here) pay this amount to the school?", did you select no and type in the amount you actually paid, minus what was covered by GI bill?
  • that is what it says to do, im trying to call the va and get  some answers
  • I am finding this part quite confusing, too!  What about the BAH money we received?  Do we need to report that?
  • BAH is not taxable. (Will be reported in Box 12 of W-2 if Active Duty). Old Military Pay rule-of-thumb: If it's an Allowance, it's probably not taxable; If it's a Pay, it probably is.
  • post 9/11 gi bill is not to be put on your taxes
  • only put ur pay...no bah no gi benefits
  • yes when you get your tuition statement it should be on they as either gi payments or third party payments. if not you have to enter it under where it ask if you have any additional assistance not shown on 1098.  I am now having to freaking amend my taxes because the college did not do their 1098-t correctly .  Then after I asked them and had already filed they descided that oh wait they would add gi payments under scholorships and grants. Taxes are confusing this year thanks to new tax laws.  Its a 1200$ difference on my taxes that when I amend will not be getting.  if your tuition was paid in full with gi bill and you got any pell grants or scholarships and it was not used for tuition expenses then it will become your taxable income , you may also not qualify for any education credits now too.. GREAT HUH
  • Ok I guess I am slow..there are different answers to the same question. Do I add what the post 9/11 GI bill paid to the college for my tution under education assistance or not?
  • Same here I am confused. I have an amount in block 2 and an amount in block 5 for scholarships, but I did not have to pay anything. The GI-Bill did. So what do I do?
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http://www.irs.gov/publications/index.html

IRS PUB 907: Do not include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the VA. These include: Education, training, and subsistence allowances, Disability compensation and pension payments for disabilities paid either to veterans or their families,

 

IRS PUB 17, pg 95: VA payments. Allowances paid by the Department of Veterans Affairs are not included in your income. These allowances are not considered scholarship or fellowship grants.


IRS PUB 970 Ch1 Pg 8  Veterans’ Benefits  Veterans Affairs (VA) are tax free. Do not include these Payment for services. Generally, you must include in payments as income on your federal tax return. If you qualify for one or more of the education benefits discussed in chapters 2 through 12, you may have to the student required as a condition of  the amount of education expenses qualifying for a specific 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 Veteran’s Administration web-site at www.gibill.va.gov for specific information about the part of any scholarship or fellowship that represents pay- various VA benefits for education.

 

Example. You have returned to college and are receiving two education benefits under the latest GI Bill: (1) a gram, or $1,534 monthly basic housing allowance (BAH) 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 do not report them on your tax return. You also want to claim an American opportunity credit on your return. You paid $5,000 in qualified education expenses (see chapter 2, American Opportunity Credit, later). 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 do not subtract any amount of the BAH because it was paid to you and its use was not restricted.



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