rotc payments/hope credit

[crackenberg]

how do you treat rotc payments received by a student for hope and lifetime learning credits? the rotc payments received are 2 part. part 1 is a monthly stipend while attending classes. part 2 is payment for services during their summer training. the monthly stipend never shows up on a w-2 or other reporting, but the summer training does. if the student does not meet their obligation either after graduating or fulfilling their service obligation by choice, they are required to pay the sum back. is the monthly stipend a tax free benefit or is it a payment for services? va benefits are tax free and decrease the amount available for the hope and lifetime learning credit. are rotc payments treated similar?

[ChEAr$]

Look at it this way

Those ROTC payments do not relate to or are reimbursements for certain classes.
They are stipends for being enrolled in the program plus the summer camps amounts
of course. therefore, not scholarships in any sense of the word.