As a college student, you are in a transitional period of life. In some ways, you are still granted some exemptions from adulthood while being thrust into other adult tasks. Income tax filing fits into this gray area for most traditional college students. You are both subject to adult tax obligations and yet also treated as a young person. Here's what you need to know about this dichotomy.
Do Students File Taxes?
Technically, any American who earned income during the calendar year is generally subject to taxes. There is no age limit. So the answer is yes, you would file in many cases. If you had a job, received certain types of scholarships or financial aid, or received unearned income (such as royalties), you would likely file taxes unless these amounts are very low.
Do Your Parents Claim Them as a Dependent?
The answer to this common question is "maybe." Parents can continue to claim college-age children as dependents on their tax forms if they meet the qualifications, such as the student being a member of their household. This decision must be made as a family so you avoid having an IRS rejection of your form for incorrect status. If you're footing your own bills, you would likely claim yourself.
Should You File Taxes if You Aren't Required?
If you didn't meet the threshold to be required to file income taxes, should you still do so? There are several good reasons to take this step. If you received Form W-2 from an employer and had money withheld for state or local income taxes, filing is the only way to ask for a refund. And many financial aid options require that you file recent tax forms.
Should You Prepare Your Own Taxes?
Unless you have experience filling out income tax forms, you should probably avoid tackling them for the first time as a college student. First, these forms can be confusing, and errors may result in fines, penalties, interest, and unnecessary tax due. Second, college students have some unique opportunities to save, including education credits, dependency deductions, and low-income tax credits. You may not know what you qualify for.
Where Can You Start?
If you want to know more about filing taxes during college, the best place to start is by meeting with local tax services. Tax services in college towns, in particular, have great experience helping other students, so they can make the filing process go quickly and successfully. Call today to make an appointment and see how you can benefit from this necessary task of young adulthood.
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