Education Expense

[Tom]

Does anyone know if you lose a job and then go out and pay for schooling
with state received funds if that counts as income. I just received a 1099-G
that list more money than I received for unemployment benefits. I am
assuming it is including the amount of money that I was given to pay for
schooling. Shouldn't that not be taxable since I used that to pay for
schooling?

Thanks
Tom

 

[Wayne Brasch]

Does anyone know if you lose a job and then go out and pay for schooling
with state received funds if that counts as income. I just received a
1099-G that list more money than I received for unemployment benefits. I
am assuming it is including the amount of money that I was given to pay
for schooling. Shouldn't that not be taxable since I used that to pay for
schooling?

Thanks
Tom

The income may be taxable, but the amount you paid for schooling may be
deductible. That would make them cancel each other out within your return,
maybe.

Wayne Brasch, CPA, M. S. Taxation