How VA education benefit payments affect your taxes
Learn about the IRS tax rules (called exclusions) for your VA education benefit payments, and find out how your payments affect your tax credits.
Do I have to pay taxes on the VA education benefit payments I receive?
No. Payments from all GI Bill programs are tax-free. This is true for you, your dependents, and your survivors.
Tax-free education benefits include:
- Tuition
- Training fees
- Test fees for licenses and certifications
- Money to pay for a tutor
- Work study
- Books
- Housing
Please don’t include education benefit payments as income when you file your taxes.
Will VA education benefit payments affect my tax credits?
Yes. If the tax credits you want to claim are based on your education expenses, you’ll need to subtract your VA education benefit payments from your total education expenses. These are the payments that go directly to you—not to your college.