Student Tax Filing Requirements
- Students should check income guidelines to see if they must file a tax return.A young woman holding a pen, doing her taxes image by Christopher Meder from Fotolia.com
Many students don't believe they need to file a federal or state income tax return because they don't make enough money from part-time or temporary jobs. However, there's a good chance that federal income tax has been withheld during the year, and to get a refund of it a tax return must be filed. Help with filing taxes is readily available at no cost, and learning the basics can help smooth the process. - Start by determining if your income requires that a tax return be filed. For the 2009 tax year, dependent students who are unmarried must file a federal tax return if earned income was more than $5,700 from a job or self-employment activity or unearned income, such as taxable interest and capital gain distributions, was more than $950.
- It may be tempting to use the simple 1040EZ form, but for most students it is not advised. By filing the 1040EZ you are claiming yourself as a dependent. Most students should have their parents claim the student as a dependent because of college-related tax deductions and credits. These deductions or credits for college expenses are more beneficial for parents, since they typically will have more income and be in a higher tax bracket than the student.
- The IRS offers several options to file a tax return electronically at no cost. Traditional Free File allows users to answer a series of questions, with the information automatically placed on the proper form. The program does the math calculations and checks for accuracy. The IRS works with a number of free-file companies, some of which also offer state income tax filing but may charge a fee for the service. Another option is Free File Fillable Forms, which include blank IRS forms that the taxpayer fills out and then files electronically. This option does not include state income tax filing.
