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I supported myself but most of the money came from unemployment, not my job. So would I select yes I paid for over half of my living expenses with earned income or No

I'm 20 and paid for my rent, living fees, and tuition for 2020 myself.
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5 Replies
DawnC
Employee Tax Expert

I supported myself but most of the money came from unemployment, not my job. So would I select yes I paid for over half of my living expenses with earned income or No

You should answer NO to that question - Did I support myself?   We asked you this question because based on your age, you might qualify for an education tax break called the American Opportunity credit.   Unemployment is considered UNearned income.  

 

Think about the people who helped pay for your living expenses. Did anyone pay for your rent or food? Consider all your living expenses and what you contributed. If you paid for more than half with your earned income, you supported yourself.

 

If a parent or someone else paid for more than half of your living expenses, you did not support yourself. If you used unearned income or student loans to pay for most of your expenses, you did not support yourself.

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I supported myself but most of the money came from unemployment, not my job. So would I select yes I paid for over half of my living expenses with earned income or No

Okay since I used unemployment, which is unearned income, to pay for most of my expenses I should answer no. Thank you, I would still be considered independent though right?

I supported myself but most of the money came from unemployment, not my job. So would I select yes I paid for over half of my living expenses with earned income or No

the rule is, to be a dependent, you must not have provided more than half of your own support.

 

If no one else  is providing support, you can't be a dependent.

if you look at the tax form, you'll see that UI payments are part of your gross income.

Answer "yes".

 

 

 

I supported myself but most of the money came from unemployment, not my job. So would I select yes I paid for over half of my living expenses with earned income or No

It's important to review your form 1040 to verify that the relevant box is not checked.

I supported myself but most of the money came from unemployment, not my job. So would I select yes I paid for over half of my living expenses with earned income or No

For what purpose are you asking your question?  Are you trying to determine if you can claim the refundable portion of the American Opportunity Credit or are you trying to determine if you can be claimed as a dependent?

 

Where TurboTax specifically asks if you supported yourself with earned income, it's determining if you qualify for the refundable portion of the American Opportunity Credit, like DawnC mentions above.

 

If you are trying to determine if you can be claimed as a dependent, supporting yourself means paying for more than half your living expenses with any money of your own, including savings, student loans (but not scholarships), and income from any sources, including unemployment. 

 

In your case, it sounds like you doesn't qualify as a dependent because you support yourself. Additionally, you don't qualify for the refundable portion of the tuition credit because you are under 24 and do not support yourself with earned income. 

 

 

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