It’s that time again! Between the flurry of the holidays and the energy of spring is tax season, the chance for people, including young people, across the country to organize their finances and prepare their returns.
While the process can seem overwhelming, especially for college students, a strategic approach can go a long way in getting through it quickly and painlessly, which is why Everest College is offering tax tips specifically designed for students.
“Even if you have filed before, tax season can be a challenge when you are a college student,” said Kevin Lewis, instructor at Everest College – Mid Cities. “Many of students are juggling coursework, a full time job and a personal life – so the pressure of filing can be very stressful. With just a few easy steps students can be prepared and file their taxes with ease.”
File a Tax Return
While not everyone is required to file, it is highly recommended that anyone who has received a paycheck over the course of the calendar year report his or her earnings to the U.S. Government. “Technically, if you earned less than $5,000 it is not mandatory,” said Lewis.
“However, most students will get most or all of their taxes back if they do. What seems like a hassle at first, might actually provide a convenient financial cushion later on.”
Know Your Status
The decision to pursue an education is significant, and finding a balance between work and school can take time. It is not uncommon for students to rearrange their schedule during stressful periods so they can focus on their studies or pick up extra hours at work when they are carrying a lighter course load. These are changes that could potentially affect filing status.
“Check with your employer to determine whether they consider you full time, part time or independent,” said Lewis “The form you receive from them will determine the form you submit to the IRS.”
Additionally, students are encouraged to check with their parents before filing their individual taxes. Many parents continue to claim their children as dependents while they are enrolled in school, which affects the student’s status and, as a result, potential deductions.
Take the Time to Do Your Homework
Oftentimes people are so concerned with what they might owe, they overlook what may be owed to them. “Higher education is good for the economy, and the government rewards that,” said Lewis. “There are several items in the tax code that are specifically designed to make college less expensive and more accessible.”
