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GI Bill: Are my education benefits taxable?

Are my education benefits taxable?

No. Any veterans’ benefits paid under any law administered by the
Department of Veterans Affairs (VA) should not be reported as income to the
Internal Revenue Service (IRS).

Per IRS Publication 97

“Payments you receive for education, training, or subsistence under any law administered by the Department of Veterans Affairs (VA) are tax free. Do not include these 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 reduce 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.

Chapters 2 through 12 are as follows:

2. Hope Credit

3. Lifetime Learning Credit

4. Student Loan Interest Deduction

5. Student Loan Cancellations and Repayment Assistance

6. Tuition and Fees Deduction

7. Coverdell Education Savings Account (ESA)

8. Qualified Tuition Program (QTP)

9. Education Exception to Additional Tax on Early IRA Distributions

10. Education Savings Bond Program

11. Employer-Provided Educational Assistance

12. Business Deduction for Work Related Education

Taken from IRS Publication 970

Post 9/11 GI Bill Military Education Benefits and Veteran Education Benefits are timely and important to you. MilitaryConnection.com is proud to provide our audience questions and answers on the Post 9/11 GI Bill. Military Education Information FAQ’s come directly from the Veterans Administration GI Bill web site. Your excellent education benefits are long overdue. This is a new program and we at MilitaryConnection.com have dedicated an entire area of the site to providing you information on Post 9/11 GI Bill Education information. Military education benefits and veteran education benefits under the Post 9/11 GI are outstanding. Many colleges, universities, trade schools and certificate programs are establishing military education programs and veteran education programs for you. Please register as a user with your email and use all of the resources we offer including our Directory of Scholarships featuring thousands of scholarships for military, veterans and dependents. There is a multitude of information on military education benefits and veteran education benefits on our web site. This is why MilitaryConnection.com is often referred to as “The Go To Site”. When the next tour is back home, it’s on MilitaryConnection.com.

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