38 U.S.C. § 7636

Exemption of educational assistance payments from taxation

Notwithstanding any other law, any payment to, or on behalf of a participant in the Educational Assistance Program, for tuition, education expenses, a stipend, or education debt reduction under this chapter shall be exempt from taxation.

(Added Pub. L. 100–322, title II, § 216(b) , May 20, 1988 , 102 Stat. 529 , § 4336; renumbered § 7636, Pub. L. 102–40, title IV, § 402(b)(1) , May 7, 1991 , 105 Stat. 238 ; amended Pub. L. 105–368, title VIII, § 805(6) , Nov. 11, 1998 , 112 Stat. 3359 .)