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I'm not a tax expert (nor do I claim to be one), but there are a few things college students need to know about filing their income taxes. Answers to common questions for students can be found on the IRS's website.
If you filed a FAFSA in 2013 for student financial aid and make less than $51,000 you can get free tax help through the IRS Volunteer Income Tax Assistance program (VITA). For more information, go to: http://1.usa.gov/Xy2TTR.
Otherwise, you may consider using a tax preparation software or service, because it can get complicated. However, don't let this deter you from doing the extra work, because it can really pay off!
Forms You're Going to Need:
- You will probably want to file a 1040 form (the long one) rather than the short 1040EZ form, because you can get credits or deductions for going to school that will make your taxes less and your refund more!
- You'll also need form 8863 for Education Credits (American Opportunity and Lifetime Learning Credits).
- Form 8917 is used for the Tuition and Fees Deduction.
- You can download IRS forms and instructions at: http://www.irs.gov/Forms-&-Pubs
Forms You Might Receive:
- Your college(s) will send you a 1098-T form by the end of January, which you need for your taxes. Some schools let you print it from your student account, while other schools require you to notify the school how and where you want to receive it.
- If you have student loans and are already paying them back, you should receive a form 1098-E, because the interest is deductible on your taxes. (Follow the instructions for Line 33 to figure your student loan interest deduction.)
- You will be sent a 1099-Q form if you have a Coverdell Education Savings Account (ESA), formerly known as an "education IRA," or are in a Qualified Tuition Program (QTP).
- If you worked, your employer will send you a W-2 form. If you received unemployment, you will get a 1099-G form. If you made other types of income or interest, you'll be sent a form.
Choose Wisely:
As a student, you may qualify for either the American Opportunity Credit, the Lifetime Learning Credit, or a Tuition and Fees Deduction. However, you can only choose ONE, so make sure you explore each option and pick the one that helps you out the most.
- Follow the instructions on form 8917 (see Line 34) for the Tuition & Fees Deduction.
- Follow form 8863 for the amount to include on Line 49 and Line 66.
- Remember... if you take the American Opportunity Credit or Lifetime Learning Credit, you cannot also take the Tuition & Fees Deduction -- so, Line 34 would be $0 (zero). But, if you do take the Tuition & Fees Deduction instead of one of the credits, then Line 49 and 66 would both be $0 (zero).
Other Things That Can Affect Your Taxes/Refund:
- Be sure to include the cost of tuition, books, and enrollment fees -- even if they were covered by scholarships or grants.
- Can you be claimed as a dependent by your parents or not?
- Is this your first year of college or not?
- Are you enrolled full-time, half-time, or less than half-time?
- Have you earned a bachelor's degree or not?
- Have you already received the American Opportunity or Hope Credit in years past?
Be Tax Smart!
