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What Do I Do with an IRS Form 1098-T for Money I Never Received?

March 19th, 2010
by Ron Kness
Ron, I am using the Post 9/11 GI Bill and have full benefits. I just received a form 1098-T stating that I have received 2,869.00. I have not received this money. I have called the school and they are researching. Can you provide any insight? Thanks. — Gerald

Hi Gerald.  An IRS Form 1098-T is a statement of tuition. So even though you did not get the money directly, the VA paid your school for your tuition and fees under the Post 9/11 GI Bill.

The form is for informational purposes only and is not considered taxable income, or even income for that matter, from an IRS standpoint.  Not only is your tuition not taxable, all GI Bill education benefits paid by the VA are non-taxable by the IRS, which means you are getting the full benefit without having to share it with the IRS. Sweet!

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Posted in New GI Bill, Veterans Education Benefits | 4 Comments »

4 Responses to “What Do I Do with an IRS Form 1098-T for Money I Never Received?”

  1. What is this; Federal Seller Financed Mortgage Statement – Interest Income? | equity loans says:
    May 11, 2010 at 10:47 am

    [...] What Do I Do with an IRS Form 1098-T for Money I Never Received … [...]

  2. Sam says:
    February 7, 2011 at 5:39 am

    So how is this form used on your taxes? When I inputed the $20,000 the VA paid for my school my refund went down. How is this possible?

  3. Ron Kness says:
    February 12, 2011 at 3:54 pm

    Don’t include the VA money in your gross income.

    Ron

  4. alan says:
    February 13, 2011 at 2:14 am

    Everyone should go to http://www.irs.gov to download and read Publication 970

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