So, you’re a student, which probably means that you’re learning all about the world of taxes. As a college student, there are things that you can take into account when thinking about filing your taxes and there are a lot of credits and deductions to consider. Here are a few tips for students who are coming up on their first tax season experience:
FIND OUT IF YOUR PARENTS ARE STILL CLAIMING YOU
One should hope that your parents still claim you as their child, but what we mean here is that you need to know if they still file taxes with you as their dependent. For the most part, parents usually will be claiming their kids as a dependent on their tax return when they’re younger than 24.
However, this isn’t always the case so as you enter the world of filing your taxes, make sure your mom or dad aren’t already doing that for you. If you’re someone who is taking care of your college tuition and making your own money, you may find that it could benefit you to pay your taxes and take some tax breaks as a student while you’re at it.
WORK WITH AN ACCOUNTANT OR FILE WITH SOFTWARE
To accurately file taxes as a young person, you may want to look into tax planning software or work with a CPA accountant. Either of these options makes it a lot easier for you to carefully file taxes so that you can get the best return and deductions and avoid making mistakes in the process. Both will typically charge a fee of a couple hundred dollars, with an accountant usually asking for more money.
However, if it saves you money on your taxes, you can be confident that it’s worth the investment. The only caveat to this is if you don’t have a lot to report or it’s rather straightforward tax filing. If that’s the case, then you’ll want to save that money.
FIND OUT HOW YOU CAN GET CREDITS
There are tax credits that students can get, such as the lifetime learning credit. If your parents aren’t claiming you when you file your taxes, consider looking into this option. While there are requirements and things to understand about this before you apply for it, such as the fact that you won’t get this credit refunded if you’re someone who is seeking to get a tax refund, consider other options. If you’re already receiving some type of tax-free help from the government, then you may not qualify.
LOOK INTO SCHOLARSHIPS
Some people work hard to make money for college, but that money is taxable. However, if you apply for scholarships, you not only get money for your school, but you also receive tax-free money, so it’s somewhat of a no-brainer to consider applying for this type of student support.
While not everyone qualifies for scholarships, it’s worth looking into if you’re seeking to save money wherever you can. There are various types of scholarships available for a variety of life situations and backgrounds, so before you rule out getting approved for college cost support, take time to research options for you.
ASK YOUR PARENTS TO CLAIM YOU
Most of the time, parents will claim you to be as dependent as they always have. However, if you paid taxes for a time but perhaps want to take a breather from being a responsible adult while you still can, you may want to reach out to your parents to claim you as a dependent, at least this year. If they say yes, then enjoy this year of not worrying about tax season.
There are a lot of tax breaks for students so as you start to take care of things like income and taxes, consider looking into ways you can save money and get deductions while you’re in school. Now’s the time to benefit!