Ohio2015Parent
5-Year Member
- Joined
- Dec 2, 2010
- Messages
- 1,122
I would think many IS schools because of budget cuts due to states being belly up will pay attention to this situation. VA has a deficit currently, and every IS college will receive state funds for their school. Some are dictated on how they must utilize these funds via their regulations.
For example Jcleppe's DS. Why pay any money out of their budget if the Army is willing to pick up the entire tab? It would be fiscally irresponsible of the school to use their money.
I am curious on how this will impact him for tax purposes. Will it be seen as income?
Yes, room and board monies paid by either the school or ROTC will be taxable income. Any funds paid out to the student over COA by the school will also be taxable income. I plan to spend the entire month of January on the IRS site and also have a brother-in-law just finishing up HR Block tax school. DS has been paid out approximately 3,500. plus a 1,800. room grant, depending on how his school handles the grading quarters he could have winter quarter also - or it could go into the 2012 year taxes. I'm sure more tax savy posters will chime in soon.