New GI Bill

[Possi]

My clients are taking advantage of the GI bill going to their child and I'm wondering how this will pan-out next year..

If the GI bill is paying a steipen, will that become taxable income?

TTB 12-7 just says that "Veterans' benefits for education and training are tax free under other rules."

That doesn't help me much, and I don't see a followup anywhere.

Thanks!

[gkaiseril]

It is still tax free and reduces the amounts that can be claimed for any credit or expense.

[Possi]

GI will be listed as scholarship or grant?

It is still tax free and reduces the amounts that can be claimed for any credit or expense.

I had one this year where the GI bill money was listed under scholarship or grants. It was more than the tuition and other expenses, so I took no education credit. I did not include any overage as income because it was all used for qualified school expenses.

However, I am sure the client I had today will have much more in GI (scholarship and grants on the 1098T) than they will have for tuition and expenses because the steipen will cover room and board. As I understand you, it will not be taxable. So, it will not be addressed at all... "not a taxable event" as I call it.

Am I reflecting this correctly?

thanks so much!