If you qualify for the 2020 unemployment compensation exemption, you may end up getting additional tax breaks. This is because your adjusted gross income (AGI) will be reduced by up to $10,200 (up to $20,400 for married couples filing a joint return. That means you could suddenly be allowed to claim other tax breaks with an AGI-based eligibility cut-off, or claim a larger amount for a tax break with an AGI-based phase-out, such as the earned income tax credit, child tax credit, retirement saver's credit, American Opportunity credit, Lifetime Learning credit, or student loan interest deduction. A reduced AGI could also mean a larger third stimulus check, since the eligibility for and amount of these payments is tied to your 2020 AGI. Philip L. Liberatore, CPA remains committed to providing you with important information that pertains to your success. Learn more here: https://www.liberatorecpa.com/