Post 9/11 GI Bill Facts – Taxable Income, Kickers, etc.

Accurate Post 9/11 GI Bill facts can be hard to come by since the New GI Bill is an incredibly complicated piece of legislation, but we are here to help.

Below you’ll find 10 lesser-known facts about the Post 9/11 GI Bill. If we haven’t answered your questions, please feel free to sound off in the comments section at the bottom of the page.

1. The Post 9/11 GI Bill and Taxes

Similar to undergraduate student loans, Post 9/11 GI Bill benefits are not taxable. You do not have to report GI Bill benefits as taxable income. In fact, Any veterans’ benefits paid under any law administered by the Department of Veterans Affairs (VA) should not be reported as income to the Internal Revenue Service (IRS). Make the most of your military education benefits by enrolling in an accredited online college from our list of the Top 25 Military Friendly Colleges!

If you have additional questions about the Post 9/11 GI Bill and taxes please post them in the comments section below.

2. The Post 9/11 GI Bill and “Break Pay”

The original Montgomery GI Bill included “break pay,” the ability to receive pay during “no class” increments 55 days or less. This was designed to give students continual financial support during lapses in their semesters, such as winter intersession/break.

However, students that are using the Post 9/11 GI Bill are required to remain in school year-round in order to gain year-round benefits. What does this mean? The Post 9/11 GI Bill does not offer Break Pay. Fortunately, most schools offer summer and winter intersession courses, though you will need to be enrolled in enough courses to be considered a “full-time student” to avoid losing your benefits during the intersession period. If you’re looking to circumvent the possibly of losing your “Break Pay”, then you’ll want to contact some of our favorite colleges for military students, since they offer year round schedules:

• Robert Morris University
• Jones International University
• Colorado State Global Campus

Each of the schools above offer online degree courses that do not include a “break” between traditional semesters, meaning that you can avoid facing a lapse in receiving benefits under the Post 9/11 GI Bill.

And even more importantly, upcoming changes to the GI Bill will make it possible for exclusively online students to collect BAH pay!

3. The “Buy Up” Program and the Post 9/11 GI Bill

Students that elected to participate in the “Buy Up” program during the Post 9/11 GI Bill will not receive an increased amount ($600 buy-up) paid under chapters 30 or 1607. Furthermore, they will not be refunded this amount under the Post 9/11 GI Bill.

Read more about the “Buy Up” Program.

4. Refund of the Montgomery GI Bill Enrollment Fee with the Post 9/11 GI Bill

Students that were previously enrolled in the Montgomery GI Bill and have elected to switch to the Post 9/11 GI Bill will be refunded the $1200 Montgomery GI Bill enrollment fee. The specific way this works:

All Montgomery GI Bill (chapter 30) contributions, excluding $600 “Buy Up,” will be refunded at a proportional amount [based on the number of months remaining under MGIB at time of Post 9/11 GI Bill (chapter 33) election] of the basic $1200 contribution. This refund will be included in the last monthly patment when chapter 33 entitlement exhausts.

Individuals who do not exhaust entitlement under chapter 33 will not receive a refund.

5. Post 9/11 GI Bill and Tutorial Assistance

Like the Montgomery GI Bill, the Post 9/11 GI Bill offers up to $2,000 for a certification of licensing exam or work-study program, and a $100 a month tutorial assistance benefit..

6. Eligibility for Post 9/11 GI Bill in Lieu of Montgomery GI Bill-Selected Reserver

This question was recently asked of us:

I have qualifying active duty service in a regular component after September 10, 2001. When I was discharged, I signed a 6-year contract as a member of the Selected Reserve. On August 1, 2009, I will be eligible for the Montgomery GI Bill and the Montgomery GI Bill-Selected Reserver. Can I elect the Post 9/11 GI Bill by giving up MGIB-SR instead of MGIB, even if I was never called-up for active duty from the Selected Reserve after September 10, 2001?

The answer to the question is as follows:

If you are eligible for MGIB and/or MGIB-SR on 8/1/2009, and you meet the eligibility requirements for the Post 9/11 GI Bill, you must trade in either MGIB or MGIB-SR to receive the Post 9/11 GI Bill benefits. You may trade in the MGIB-SR even if you were not called for active duty fro mthe Selected Reserver after 9/10/2001, and have no qualifying active duty associated with your Selected Reserve Service. If you trade in MGIB-SR to become eligible for the Post 9/11 GI Bill, you will retain eligibility to MGIB under the rules established in that program.

You cannot, however, receive benefits for more than one program at any given time, and you cannot receive more than a maximum of 48 months of benefits under any combination of VA benefit programs.

7. ROTC Grads and the Post 9/11 GI Bill

Graduates from a ROTC academy qualify for the Post 9/11 GI Bill. However, the time spent in the ROTC program does not count towards the time served requirements, so prospective students will have to sign an obligation of service document to receive their benefits.

8. College Fund or Reserve Kicker Qualification and the Post 9/11 GI Bill

Students that were promised the College Fund (also “kicker,” or “Reserve Kicker”) will continue to qualify for this under the Post 9/11 GI Bill. If eligible, the student will be paid the kicker monthly as an addition to their housing stipend. Students that are not receiving a housing stipend will still receive their kicker if they are:

• An active duty service member
• A veteran training at half time or less
• A distance learner (enrolled at an online college)

9. The National Call to Service Program as a Supplement to the Post 9/11 GI Bill

For prospective college students looking for additional benefits beyond the Post 9/11 GI Bill, the National Call to Service program allows students to qualify for one of the following incentives:

1. Cash bonus of $5,000
2. Repayment of a qualifying student loan not to exceed $18, 000
3. Entitlement to allowance equal to the 3-year monthly chapter 30 rate for 12 months ($1,034 effective Oct 1, 2005)
4. Entitlement to allowance equal to fifty percent of the less than 3-year monthly chapter 30 rate for 36 months (Fifty percent of $840 effective Oct. 1, 2005)

In order to be eligible for this supplemental financial aid, the prospective college student must fulfill the following criteria:

1. First, after completion of initial entry training, individuals must serve on active duty in a military occupational specialty designated by the Secretary of Defense for a period of 15 months.
2. After this, and without a break in service, these individuals must serve either an additional period of active duty as determined by the Secretary of Defense, or a period of 24 months in an active status in the Selected Reserve.
3. After completion of this period of service, and also, without a break in service, the remaining period of obligated service specified in the agreement will be served as follows:
   • on active duty in the armed forces
   • in the Selected Reserve
   • in the Individual Ready Reserve
   • in Americorps, or another domestic national service program jointly designated by the Secretary of Defense and the head of such a program

10. California and the Post 9/11 GI Bill

The original rules of the Post 9/11 GI Bill did not provide any support for California schools, because they do not call their fees “tuition”. However, revisions of the rules now provide up to $333.75 per credit hour, with a maximum expenditure of $2,165.25 for tuition and fees to in-state students at public schools, per term.

For More Information

Please feel free to search our site for additional details. Or, post your questions in the comments section below. Typically, our staff is able to assist you with specific benefits questions within 24 hours.