Military Benefits on the FAFSA

The Free Application for Federal Student Aid asks three questions related to military benefits. This includes information about combat pay, housing allowance and noneducational veteran benefits. If you or your family aren’t sure how to report these benefits on the FAFSA, here are some helpful tips about the military questions.

  • Combat Pay: The first military benefits question asks about the service member’s total combat pay. If the service member is an enlisted member or a warrant officer, they don’t have to provide this information. However, if they are a commissioned officer, they will need to report their combat pay. This amount can be found on the service member’s W-2 form in box 12.
  • Housing Allowance: Reporting this information is dependent on several factors. If the member receives a subsidy for on-base military housing or a Basic Allowance for Housing (BAH), then the member doesn’t need to report the benefit. Those who receive housing allowances other than the ones mentioned above must include that information on the FAFSA.
  • Noneducational Veteran Benefits: Those who receive the Montgomery GI Bill, Post-9/11 GI Bill, Dependents Education Assistance Program or Vocational Rehabilitation Program don’t need to provide this data. Those who receive other noneducational assistance, such as benefits including Disability, Death Pension, Dependency and Indemnity Compensation (DIC) and VA Educational Work-Study allowance, must report that information. Noneducational veteran benefits can be found on the service member’s monthly VA benefit statement.

Knowing which types of military benefit information to include on the FAFSA and gathering the right documents can make the process easier. The service member should collect the appropriate year’s tax return, W-2 forms and benefit statements to answer these three questions accurately. For more information about military benefits and the FAFSA, please visit MilitaryBenefits.info.  

Keep Your Tax Information Safe! You’ll Need it For Your FAFSA.

When you’re completing the Free Application for Federal Student Aid (FAFSA), you’ll be asked to submit income information from two years prior to the year that you’ll attend college. That means if you’re submitting the 2021-2022 FAFSA, you’ll need your 2019 federal tax return. You may not have been required to file a return that year*, but any income earned in 2019 still needs to be reported on the FAFSA. If you didn’t file a tax return, it’s even more important to keep your W-2 in a safe place for reference.

If you’re a dependent student, your parents will also need to report their 2019 income information.** Parents who filed a joint return in 2019 should have their W-2’s handy as well, because the FAFSA will ask about the income of ‘Parent 1’ and ‘Parent 2’.

Since you must complete the FAFSA each year you need federal and state financial aid, it’s best to keep all relevant documentation together in a safe location, including your FSA ID (username and password). This will help you complete all future FAFSAs quickly and accurately.

*To learn more about who may have been required to file a 2019 tax return, see the 2019 IRS 1040 Instructions, pp. 8-11.

**To determine whether you’ll be a dependent or independent student on the 2021-2022 FAFSA, see the Dependency Questionnaire at UCanGo2.org.