What can I claim when I do my taxes?

Question

I am a full time college student. I got out of the Navy on an honorable discharge one month before starting college. I get unemployment benefits and have had quite a bit of help from tuition assistance and the pell grant for college. Somebody told me that I can claim gas money, food money and rent when I do taxes. Is this true? If not, what can I claim? And do I get a tax break for being a full time college student?

I live on my own and I am 27.

Answer 1

Unemployment benefits are taxable. You will receive, if you haven't already, a 1099-G, reporting the amount of unemployment benefits you have received in a given year. Tuition assistance through Pell Grants are not taxable. To my knowledge, after reading through the IRS tax instructions, you may not claim gas, food, or rent. You are allowed an exemption for yourself and the standard deduction on Federal and State Tax Returns. The state exemption and standard deduction will depend upon your legal residency.

As a full-time student, you are not allowed any "tax break". If you live with your parent/parents/guardian, they provide the majority of your of your living expenses, and you are under the age of 25, they may be able to claim you as a dependent and itemize for some deductions.

I would suggest you get an IRS 1040 or 1040A Instruction Book and read it carefully. If you still have questions, any IRS office will be glad to assign an agent to guide you through the preparation of your taxes. There is no charge for this service.

Good luck.

Answer 2

The someone who told you that you could claim gas money, food money and rent was wrong. You can claim an education credit for your tuition and fees, but that's about it. If these are paid by grants, then you can only claim any tuition and fees you paid over the amount of the grants. If you paid them with loans, you could still claim them, since you'll have to pay that back.

The unemployment comp that you received is taxable income, but might not be enough to require you to file or pay anything, depending on what your TOTAL income is.