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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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2015 tax questions. My daughter is in her second year of

Customer Question

2015 tax questions.My daughter is in her second year of college. She uses the Post 911 GI to pay for college. My income is about $35000 yearly from alimony. When her need on the FASFA was calculated, she recieved enough financial aid from the college to cover all of her expenses for the fall 15/spring 16. The college deducted the given financial aid from her school bill but also billef the VA for her tuotion. The VA then paid her tuition to the college and the college refunded her the amount paid by the GI bill. The school provided a 1098T with box2 reflecting $6,000 and box 5 $12,000. I am confused as to how to deal with this. Can she recieve such a large amount of need based aid plus her gi bill benefits.The excess funds were beneficial as she had to puchase 2 musical instruments costing almost $5000 for her required studies.
Submitted: 12 months ago.
Category: Tax
Expert:  Lev replied 12 months ago.

Even if you are receiving Post 9/11 GI Bill benefits, you can still receive federal student aid including Pell grant.
So you are OK.

Expert:  Lev replied 12 months ago.

See here
Plus - neither Pell grant nor GI Bill benefits are taxable.

So far - there is nothing to worry - the funds awarded for the Pell Grant (which are title IV funds) should NOT be considered when reporting tuition to the VA.

See example on page 45

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