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January 28, 2020
Question

Tax returns

  • January 28, 2020
  • 1 reply
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I didn’t work at all. But I was a student the army paid me for going to school. Which I used that money to take care of my 9 month old son. How would I file taxes

1 reply

KrisD15
January 28, 2020

If the money was paid to you from the VA, it is not reported as income, it is not taxed. 

 

If you did not supply more than half of your and/or your child's support, someone else (the person that did support you) might be able to claim you as a dependent. 

 

ACCORDING TO THE IRS:

 

“Veterans' Benefits

Payments you receive for education, training, or subsistence under any law administered by the Department of Veterans Affairs (VA) are tax free. Don't include these payments as income on your federal tax return....

Example. You have returned to college and are receiving two education benefits under the latest GI Bill: (1) a $1,534 monthly basic housing allowance (BHA) that is directly deposited to your checking account, and (2) $3,840 paid directly to your college for tuition. Neither of these benefits is taxable and you don't report them on your tax return. You also want to claim an American opportunity credit on your return. Your total tuition charges are $5,000. To figure the amount of credit, you must first subtract the $3,840 from your qualified education expenses because this payment under the GI Bill was required to be used for education expenses. You don't subtract any amount of the BHA because it was paid to you and its use wasn't restricted.”

 

CLICK HERE for IRS Pub 970

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