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Do I have to report GI Bill payments?

No, you won’t be taxed on your GI Bill scholarship funds.

However, you must subtract your GI Bill and other nontaxable scholarship funds to claim certain benefits. You must subtract the funds from your qualified education expenses if you claim any of these:

  • Tuition and fees deduction
  • American Opportunity Credit
  • Lifetime Learning Credit
  • Any other education-related benefits

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