Post 911 GI Bill vs Federal Tax Return

[Hydroguy87]

Does anyone know if my son has to claim his payments as income on his tax return this year, or are the payments considered non-taxable BAH payments?

Thanks in advance.

USAF -- Retired (as of 1 Apr 2011)

[CurDog64]

Im not sure, I used the 1605, but I'll find out an answer for you by tomorrow.

After doing a little research online, all MGIB benefits are tax free.  I will confirm with the VA Rep at our university.

[OKC]

I used mine last year and this year and did not have to claim them. H&R block did my taxes this year and he said that it was non-taxable.

[Hydroguy87]

Great. Thanks for the info. Do you know if they still claimed them on the tax papers as non-taxable income, or just left the income off all together.

[OKC]

I told the H&R Block guy and he didn't even want to look at them....so I guess just left them off all together...He is an older gentleman who has been doing taxes for many years, so I trust him.

[dawginar]

gi bill is not taxable/not reported. It was money you invested. Military has some benefits along with the great salary they pay you...

[pheine78]

What a great benifit this is.  Although I am done with graduate school, when I retire in 6 years, I am going back to school to take full advantage!!!  That is the plan right now; with that said, another great thing about the Post 911 Bill is I can transfer it to my kids....might change my mind in the next few years and do that.  Regardless, this benifit is awesome!!!

[hogginbama]

Transferred my GI Bill to my youngest son. He will start using it next year. I have heard and been told by a couple of the VA Reps that there are changes in the works for it. Currently it pays up to the highest tuition for a pubilc school in a given state, a change would be a set amount across the board. Also, in the past, the GI Bill would pay first and then any scholarships applied. The change here would be scholarships applied first and then the GI Bill picks up the remaining tuition. Have heard of no change for the housing benefit....that is the best part in my opinion.