Do You Have To File Taxes As A Student ?
FILING TAXES AS A college student has its own complexities and set of challenges. Determining whether to file and how to file taxes requires due consideration of year’s employment, wages, tax withholding, whether to claim benefit as a dependent child vs. independent student. Student can also use TurboTax software , for the free trial call TurboTax Contact Phone Number , also you can get help to connect toll free 📞 1-855-481-5333 .
Like the answer to any tax question, it depends. Students who’ve earned an income of less than $12,000, which is the standard deduction, aren’t required to file a tax return. But they may still want to file if they had income taxes withheld on their paychecks. Not submitting a tax return, means they may end up forfeiting this money owed to them if it was too much withheld.
College Student Tax Filing Requirements
Here’s what college students should know about filing taxes.
Taxable Vs Non-Taxable Income
Here’s a List of Few Taxable Income Types for Students:
- Pay such as wages, salaries, tips, ROTC active duty pay
- Self-employment income includes, but not limited to: summer jobs, babysitting, tips, petrol pump attendant, newspaper delivery, etc.
- Scholarship for incidental expenses includes room rent, board, and travel
- Cash payments / financial aid in lieu of teaching, research, etc
- Where the scholarship exceeds the total tuition, supplies, fees, equipment, etc. the exceeding portion is taxable
Nontaxable Student Income
- Financial aid – Scholarships, grants, and teaching assistantships. Generally, a scholarship for tuition expenses, books, supplies, and equipment needed for courses and fees is tax-free but does not include payments for room and board.
- Financial aid for services required by the Armed Forces Health Professions Scholarship and National Health Service Corps Scholarship Program are tax-free.
- Payment by an employer for education or tuition-assistance program of up to $5,250. The education expenses include Tuition fees, books, and supplies, and equipment.
When Student File Tax With Parents
Parents can claim the benefit of a dependent child in their tax return if you file as dependent. You can file with your parent:
- If you were under 19 at the tax year-end or under 24 as a full-time student
- Your gross income was under $12,000
- The only income you receive is from interest and dividend payment
- You are not filing a return or a joint return.
You Can’t File With Parents If:
- If at the beginning of the year you are working on a Masters or Doctorate program
- If you are married (including separated or divorced)
- No federal income tax was taken out of your income under the backup withholding rules.
- If the answers to more than one question, you may be considered as an independent student and do not have to provide information about your parent for FAFSA (financial aid to help you pay for college)
- Even if you qualify as a dependent and your parents claim the benefit, you can still prepare and e-file your own tax return.
Non USA Students IRS Tax Filing
Foreign and international students
The IRS does have special rules for foreign and international students, scholars, teachers, and exchange visitors. Based on the country of your origin as an international student, you need to check if there is a double taxation agreement between your country and the US.
As a non-resident in the US, you’ll be taxed on:
- Any income earned from employment in the US
- Any other income from a US source
- Any stipend, fellowship, grant or award received
Depending on where you choose to work in the US, there are 4 different types of taxes applicable to your earnings, including:
- Federal Tax
- State Tax
- Federal Insurance Contributions Act (FICA) Tax
As a non-resident J1 student, you should not be charged FICA tax, however, it may happen, and if so you should apply for a refund unless you qualify as a resident alien due to previous presence in the US .**
Federal Insurance Contributions Act (FICA) Tax is a federal payroll (or employment) tax imposed on both employees & employers to fund federally funded Social Security and Medicare programs.
Unless you elect to be treated as a resident alien for federal tax purposes, you cannot claim an education credit . **
If you are a U.S. nonresident alien, you should file Form 1040NR or 1040NR-EZ.
Tax or Income Reporting Forms
Form W-2 – Wages and salaries as part of a teaching assistant ship or fellowship
1099 Form – IF any entity or person (not your employer) paid you money (least $600) you will receive a 1099-K or 1099-MISC Form with details of such income. Use this to fill out the Schedule C or Schedule E Form detailing the income earned in your side hustle. This includes the following:
- Educational expenses
- Charitable donations
- Classroom expenses
Tax Impact of Any Side Hustle You Do
Jobs through gig economy (short-term labor contract); say, driving for a ride-hailing service like Uber and Lyft or delivering sandwiches through an app attract tax liability or errand-running site TaskRabbit is considered as independent contractors. Such workers are required to file quarterly tax payments after deducting qualified business expenses. The good news is hasn’t got to be quarterly and that you can make your estimated tax payments at any time.”
Form 1098-T- Tallies expenses paid to the college or university, scholarships, fellowships, and grants received plus qualified tuition expenses. Some related costs may not be included in Form 1098-T, however, the costs can still be claimed as part of the credit.
1098-E – Summarizes student loan interest payments, receipts for textbooks, supplies, and equipment which are not be reported on Form 1098-T
How can Students File Taxes for Free ?
Unless you have a complex tax situation or prefer to be filed as dependent with parents, tax filing can be easy and shouldn’t cost you anything , learn more How To eFile IRS TAX Free Online .
Internal Revenue Service’s Free File program is just right for low-earning students who have simple taxes to file. Software like TurboTax guarantees their free versions of popular tax software options for people making under $34,000 and other software programs also allow the free filing for less than $66,000 in adjusted gross income. Most schools have a Volunteer Income Tax Assistance, or VITA, program on campus that offers free tax advice to qualified individuals.