Can a taxpayer claim the American Opportunity Credit with monies paid to a college with the Montgomery GI Bill ? The Montgomery Bill is paid directly to the taxpayer and he in turn pays the college. From what I read only monies above what the the bill covers is eligible. Tax free monies does not count. The taxpayer has no taxable wages, only GI Bill and Military disability. They would only qualify for the "refundable portion". The Montgomery bill (from what I read) differs from the Post 911 Bill, in that, with the 911 bill the monies is paid directly to the college. With the GI Bill the money goes to the taxpayer and he can use it for whatever. I researched and see different answers. Some say the GI Bill is eligible, some say its not. First time I have had this situation. Can he take the AOC ? Any insight is welcome.
Comment