ROTC and Taxes

Discussion in 'ROTC' started by Jcleppe, Apr 25, 2011.

  1. Jcleppe

    Jcleppe Member

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    I know this is a bit late for this year but I have a question regarding dependents for anyone in the know.

    If your son or daughter is attending college with a ROTC Scholarship that is being used for tuition, can the DD/DS still be claimed on the parents taxes as a dependent.

    I know that cadets at the academies cannot be claimed as dependents of the parents taxes, but I have read conflicting and sometimes confusing info regarding ROTC.

    I will of course consult a tax professional but I thought I would bring it up here in case anyone else was wondering the same thing.

    Thank you
     
  2. paradoxer

    paradoxer Member

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    Yes they can still be a dependent

    A full tuition (or even tuition + room and board) ROTC scholarship would not disqualify them from being a dependent, this would be no different than having a merit based scholarship for a fantastic GPA/ACT record.
     
  3. bjc

    bjc Member

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    I would also like to know the answer to this...this is my reaction to doing taxes each year :eek: ...so any information would be great!
     
  4. bjc

    bjc Member

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    Will you get a tax form (I think it was a 1099?) from the Army/Navy/AF listing the ROTC scholarship amount paid for your son/daughter just like you get from the university when your son/daughter has an academic scholarship from the university?
     
  5. paradoxer

    paradoxer Member

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    University Issued

    The 1098-T which you refer to is issued by the university and should include the ROTC scholarship. The 1098-T reflects calender year not the academic year which means you may have to do some math to compare the periods for tax purposes.
     
  6. bjc

    bjc Member

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    Thanks! :smile:
     
  7. dunninla

    dunninla Member

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    I won't have to really know this until next year, but from following discussions about this topic here on this BB, I understand that

    ROTC Tuition/Fees: NOT taxable
    ROTC subsistence pay (aka $300/month, $350/mo, etc.) is NOT taxable
    Book Stipend: NOT taxable
    Transportation reimbursement for Aug/May: NOT taxable
    University reimbursing Room/Board for some ROTC students: Taxable
    Summer work pay in ROTC/NROTC/AFROTC: Taxable

    This is a good read:

    http://www.irs.gov/individuals/students/article/0,,id=96674,00.html I have no clue if it is current.
     

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