599 unemployment

[Natcat]

I just got on unemployment and was wondering what would differ end of year when I file my taxes. Would you be able to furnish any details? Would the usual tax brackets apply? I also just enrolled into school. Would anything differ when filing taxes as an adult going to school? 

[LauraJCPA]

Hi, Natcat!

Unemployment benefits will be fully taxable again for tax year 2021, unless, of course, they change the law again! So any benefits you receive will be counted as income in your return. The same tax brackets would apply for unemployment as for wage or other income (other than investment income or capital gains from stock sales).

And good for you - education is a wonderful thing!

You may be eligible for Education Credits for your school expenses. The American Opportunity Credit is available for qualified education expenses paid for an eligible student for the first four years of higher education. You can get a maximum credit of $2,500 per student and if the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you.

Here is a link to the IRS page on the American Opportunity Credit - there are also links to resources for education benefits on this page!

American Opportunity Tax Credit