By Lauren Steinbrook
Assistant Online Editor
McKenna Johnson, a junior biology major, finds it daunting to be filing taxes on her own for the first time this year.
“It’s intimidating to think about all the forms and numbers. It feels like one mistake could cost me a lot,” said Johnson.
According to a recent survey from CNET, 33% of Gen Zers said they feared making a mistake, 18% said they worried their information could be at risk to scammers, and 15% said they were concerned they would owe more to the IRS than they could afford.
“When people hear taxes, they just hear all these, like, numbers, like 1040 and W-2s — and these aren’t words they normally use in their daily language,” said Kevin Reed, director of student financial services. “It gets really confusing, especially if they’ve never done it before.”
But no matter how anxiety-inducing the process may be, the April 15 deadline for filing federal tax returns is approaching. Students could face late payment penalties and interest unless an extension is requested if the deadline is missed.
Normally, the deadline to file the federal tax returns is April 15, but because of the recent severe weather, 13 states, including Tennessee, got an extension until Nov. 3 to anyone whose address on file is within Tennessee’s 95 counties, according to News Channel 5.
“The biggest thing people could mess up is choosing not to file when you should have or not doing it in time,” said Reed. “Another sort of mistake is waiting until the last minute. It’s stressful. It brings up a lot of anxiety. Nobody likes doing taxes, but doing it earlier is better.”
How do you know if you need to file?
According to the IRS, U.S. citizens or permanent residents who work in the U.S. are required to file a tax return. International students are also required to file, even if they have not worked. Generally, you need to file if:
- Your income is above the filing requirement of $14,600.
- You have over $400 in net earnings from self-employment (side jobs or other independent work)
- You had other situations that require you to file
The IRS website also notes that it might be beneficial to file even if not required to.
To qualify as a dependent in college, a student must be a full-time student under the age of 24 and receive more than half of their financial support from the parent or guardian claiming them, according to the IRS.
However, students who are claimed as dependents can still file their own tax return, depending on their income, marital status and other criteria. If a student worked a part-time or full-time job, they should have received a W-2 form, which may require them to file taxes.
To qualify as an independent, students who are over the age of 24 or made more than $14,600 in the past year should file their tax return separately from their parents or guardians.
“The definitions [of independent and dependent] are different depending on what you’re talking about,” said Reed. “There’s a big misconception. People think that since they filed their taxes by themselves, and their parents did not claim them as a dependent on their taxes, they are independent on the FAFSA. You can be independent for your taxes, but when it comes to FAFSA and your ability to get certain loans or grants, you’re still dependent.”
After establishing your status as a dependent or independent, you should begin collecting the forms necessary for filing a tax return.
You’ll need any W-2 forms from your employers, including those from on-campus or off-campus jobs. If you worked as a freelancer or had self-employment income, you may also need a 1099 form. If you received financial aid or paid tuition, you might receive a 1098-T form.
For a full list of the documents you may need, visit https://www.irs.gov/filing/gather-your-documents.
“1098-Ts are not required to be added. We might have to send you one, but a family or student does not have to include it on their taxes,” said Reed. “You only want to put the information in for 1098-Ts if it benefits you and you can qualify for a credit from it.”
Student Tax Credits
One benefit of filing taxes while in school is the ability to claim specific tax credits.
According to the IRS website, a credit is an amount you subtract from the tax you owe. This can lower your tax payment or increase your refund. Some credits are refundable, and they can give you money back even if you don’t owe any taxes.
Two credit options available to students are the American Opportunity Credit and the Lifetime Learning Credit. These credits can help offset the cost of college tuition.
The American Opportunity Credit offers up to $2,500 per year for students in their first four years of undergraduate study, based on at least $4,000 spent on tuition, books and fees.
The Lifetime Learning Credit can be used for undergraduate, graduate or professional degrees and offers up to $2,000 based on 20% of qualified education expenses.
Students can claim one of these credits, but not both at the same time. If there are multiple dependents, the credits can be used — one for each student.
Students can access their 1098-T through the self-service portal found under Quick Links on Trevecca’s SharePoint site. You can also visit the Student Account Center for your latest 1098-T tax statement for the 2024 year.
For more on your 1098-T, you can visit https://www.trevecca.edu/1098-t-tax-info-form
Reed said it’s always a good idea to file your tax return as early as possible. Filing early can help you avoid the last-minute rush and ensure you meet the April 15 deadline. Setting up a personal ID on IRS.gov will allow you to keep track of your tax return and access explanations for every tax form.
Free tax preparation sites, like H&R Block, IRS Free File and FreeTaxUSA, can make the process easier for students. These sites walk users through each step of the filing process, explaining what forms are needed and how to obtain them.
“I used H&R Block, and it was super easy. It walked me through every step and was very helpful,” said Johnson. “I had to have my dad help me get all my forms together and figure out everything I needed. But the website was very straightforward and free.”
For students filing taxes for the first time, the process can be intimidating, but there are resources available to make it easier.
“I recommend if you have somebody like a parent or somebody who’s done it before that can help you walk through it your first time by yourself, it will be a big help. They don’t have to be an expert, but even an older sibling or friend who can just help,” said Reed.
According to the IRS, here are the steps you should follow:
- Check if you need to file
- Gather your documents
- Claim any credits and deductions
- File your return
- Get your refund
- Pay your taxes on time
- Be ready to file next year
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