Would Someone Assist With a GI Bill Tax Question?

MAJ Ken Landgren — Mon, 21 Sep 2015 16:15:51 -0400

Last year my daughter used my GI Bill to go to a school. Can I use the tuition and living expenses for tax purposes?

Response by SSG Private RallyPoint Member made Sep 21 at 2015 4:19 PM

SSG Private RallyPoint Member — Mon, 21 Sep 2015 16:19:51 -0400

Interesting question. I know if you used the GI Bill and received that tuition and living expenses, you would have to claim that income. With her receiving it, if you are claiming her as a dependent, you'll need to claim that income. If she is filing separately, and she is claiming that income, you won't need to then.

At least, if I'm understanding the question correctly.

Response by CAPT Kevin B. made Sep 21 at 2015 7:39 PM

CAPT Kevin B. — Mon, 21 Sep 2015 19:39:32 -0400

Actually it is tax free if it's used for qualifying expenses. Best way to ensure it passes muster is to go to school at least 1/2 time, distribute as much as you can directly to the school, i.e. tuition, food, and board, boots, supplies, etc. The school provides a 1098T which shows the expenses were actually paid. If you pay for room and board outside, there are some rules about how much you can write off i.e. the equivalent of staying and eating at the school. There are other qualifying expenses such as transportation that the IRS pub lists. So whatever is left on the GI bill benefit might be subject to tax. It's been awhile since I did GI Bill and my current experience is with a guaranteed state tuition fund that was distributed for my kids education. My biggest struggle was getting the financial office to produce correct 1098Ts.