Question

Dontrell, an active duty servicemember, receives student loan repayment benefits of $4,000 annually. In July 2022, Dontrell was deployed to the Persian Gulf. How much of Dontrell's student loan repayment benefits are nontaxable, due to his service in a combat zone for 2022?

Answer 1

Dontrell's student loan repayment benefits are fully nontaxable due to his service in a combat zone. This means that all $4,000 of his annual student loan repayment benefits are exempt from taxation.