GI BIll an Education Deduction?

[nvusmcsgt]

Hello all,
I just wanted to give a heads up about taxes and the GI Bill. I am going to school full time and using student loans right now to pay for school. I recently was layed off because the business I worked at closed down. I am using my GI Bill to help offset some of my living expenses. As I was doing my taxes I put in the info from my 1098-T form. it then asks about any scholorships or VA Educational benefits that I recieved, so I put what I had recieved from that. Then it tells me that I cannot get a education deduction. Ok so here is the main info I want to share. On that form when it asks you if you have recieved scholorships etc it is only money that is REQUIRED to be used to pay for school. I check with the VA and they said it is a educational benefit but you can use it for anything you want. You only have to be eligable and enrolled in school. So as long as you use the GI Bill to pay for things other than school you do not have to claim it as a educational benefit. Sorry for the long post. If anybody has any questions you can shoot me a PM or email and I can explain it better if needed. I am sure this info is on here somewhere but I figured I would freshen it up:)
Semper Fi

[thewookie]

Hello all,
I just wanted to give a heads up about taxes and the GI Bill. I am going to school full time and using student loans right now to pay for school. I recently was layed off because the business I worked at closed down. I am using my GI Bill to help offset some of my living expenses. As I was doing my taxes I put in the info from my 1098-T form. it then asks about any scholorships or VA Educational benefits that I recieved, so I put what I had recieved from that. Then it tells me that I cannot get a education deduction. Ok so here is the main info I want to share. On that form when it asks you if you have recieved scholorships etc it is only money that is REQUIRED to be used to pay for school. I check with the VA and they said it is a educational benefit but you can use it for anything you want. You only have to be eligable and enrolled in school. So as long as you use the GI Bill to pay for things other than school you do not have to claim it as a educational benefit. Sorry for the long post. If anybody has any questions you can shoot me a PM or email and I can explain it better if needed. I am sure this info is on here somewhere but I figured I would freshen it up:)
Semper Fi

I'm kinda confused. So, you're going to school full-time and drawing full time GI Bill Benefits,,, and using student loans to pay for college? Do I have that right? Well then, that makes sense to me why you'd get the deduction.

But for me, I'm only using the GI Bill to pay for college. And that's tax free moolah. So in my case, I'm thinking that I can't take the deduction, right?

[nvusmcsgt]

That is correct. Basically any money that is required to be used for school ( grants, scholorships, VA education benefits etc.) has to go against what you actually paid. Example if you paid 5000 for school and the GI Bill amount for the year was 5000 you do not get a deduction. BUT if you use the GI Bill for OTHER expenses then you can use the 5000 you paid for school towards your education deduction. It is kind of crazy. The GI BIll is a VA education benefit but it is not required that you actually use it to pay for school. Does that make sense? So I am sure that you pay for school out of pocket and use the GI Bill to pay your monthly non school expenses right;). Basically what I am saying is when it comes time to do your taxes do not count the GI Bill as education benefit.

[thewookie]

That is correct. Basically any money that is required to be used for school ( grants, scholorships, VA education benefits etc.) has to go against what you actually paid. Example if you paid 5000 for school and the GI Bill amount for the year was 5000 you do not get a deduction. BUT if you use the GI Bill for OTHER expenses then you can use the 5000 you paid for school towards your education deduction. It is kind of crazy. The GI BIll is a VA education benefit but it is not required that you actually use it to pay for school. Does that make sense? So I am sure that you pay for school out of pocket and use the GI Bill to pay your monthly non school expenses right;). Basically what I am saying is when it comes time to do your taxes do not count the GI Bill as education benefit.

Good to go, thanks!

[nvusmcsgt]

Good to go, thanks!

No problem.
Semper Fi