Unemployment benefit reduction

I am currently a student receiving work-study funds. My UI benefits are reduced by the amount I receive from work-study. The university told me that Oregon cannot do this because work-study is a grant, not earned income. Oregon UI Dept says that I do have to claim it and it reduces my benefits. I want to get a nonbiased answer if I can.

Asked on June 25, 2009 under Employment Labor Law, Washington


N. K., Member, Iowa and Illinois Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Your work-study earnings are considered taxable income.

However, while I am not sure if they should reduce your UI benefits, one factor may be the amount of hours that you are enrolled in school. If you are enrolled less than full-time, your earnings may be subject to UI taxes.

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