Are my Post 911 GI Bill Benefits taxable?
You are here: Home / Education / Are my Post 911 GI Bill Benefits taxable?
The short answer is no, these benefits are NOT taxable and should NOT be reported on your tax return as income. If you have done so in the past, you should have your returns amended for additional savings. You should receive a 1098-T showing what the VA paid for.
To be clear here this means you do NOT claim GI Bill® benefits or other government funded education benefits as income. This also means you cannot take deductions or credits for expenses that are paid with grants or VA benefits.
If you utilized other education benefits, you may have to reduce the amount of expenses qualifying for a specific benefit by part or for all of your VA payments if you qualify for one or more of the education benefits outlined in Chapters 2-12 of IRS Publication 970. The Veterans Administration website can provide additional information concerning these benefits.
You're receiving two education benefits.
Your Basic Allowance Housing (BAH) does not need to be subtracted because it is not a restricted benefit.
Also, did you know that if you're a member of the military, you can get free tax filing services? Military OneSource, a service of the Department of Defense, has partnered with H&R Block to offer these free services.
Is my 20 year retirement check taxable?
Most military retirement pay (or non-disability retired pay) is subject to withholding of federal income tax. Military retirement pay due to the disability of a combat-related injury typically is not. However, military retired pay is not subject to withholding for Social Security tax.