"Hey! Did you just hear that sound? It's of nail biting. O' God!!! Gentleman, tell me, tell me, tell me about your first every experience of filing tax? Any advice or some tricky-gentle-tips? I so badly want them."
We have all grown up hearing our parents & the media complain about the headaches of tax season, a topic that most students are quick to ignore. But for most of working college students on the brink of adulthood, the exact time to start filing taxes is nearer than they wonder - now.
We have asked some universities experts to share some advices to make things easier for students filing their first tax returns.
1. If your paychecks have had taxes withheld, do always file.
It's absolutely crucial to know when to file your taxes & what information gonna help you to do so. As Twombly John, an accounting & finance professor at the Illinois Institute of Technology, advises that the law states that any student who is dependent & earns an income less than $6,200 in the tax year doesn't have to pay taxes. Anybody making over this amount by law must file. But, “if a student does not have to file a tax return, not filing still would be a mistake if any income taxes were withheld on paychecks,” Twombly John says. “That would be tantamount to giving IRS a donation!” So even if you aren't legally required to file a return, you'll want to do so because your government may owe you money.
The first step necessary step in filing taxes is obtaining your W-2 form, which is proof of employment at a company or organization. If you held more than or two or three jobs over the past year, make sure to obtain W-2 from each of your employers. The company for which you worked for will typically send you the form by 31th January, but do contact them if you don't receive it by then.
2. You can't claim tax exemptions if you're a dependent.
Knowing your status as one who is dependent on parents’ tax returns is vital to get the basics of tax filing. In reality, not knowing is one of the biggest mistakes a student can make. According to the IRS, a dependent must be either a qualifying” child”or “relative” who meets some conditions, such as income, age requirements, or full-time student status. Dependents cannot claim any exemptions when filing their own taxes, even if their parents don't claim them either. Since almost all college-age students fall into the dependent category, students can’t claim their own exemption.
3. Take advantage of free tax assistance at college.
Most of worries and troubles of students is due to their unfamiliarity with tax process. “If students find the irs.gov website, it can be so difficult to navigate & to understand,” Twombly John says. “Lots of universities have self-help student groups & often professors give guidance to their students” on the process. In particular, lots of universities participate in the VITA (nationwide Volunteer Income Tax Assistance) program. This is a brilliant free service that students can use for any tax guidance, both in campus & their community. Taking benefit of the many support avenues can jump start tax preparation & mean wonders for future tax seasons - for filing income tax service.
4. Start preparing yourself early.
Firstly, know what is the deadline to file a tax return? It is important to begin the process well in advance. This will give you time to gather the right tax documents & seek advice from your parents & tax professionals.
5. Do not pay to file taxes.
College students, like everybody, are eligible to use the IRS tax filing software at "0" cost—assuming your annual household income is less than $55,000.
6. Don't overlook deductions for your education.
If you are going to school—& paying for it—you can opt for certain deductions when filing your tax return. Be 100% sure to look into education tax credits & the earned income tax credit. New taxpayers should make sure they don't leave money on the table by overlooking tax deductions. A deduction actually reduces the amount of tax taken out of your paychecks, & education deductions can save you as much as $4500.
7. Beware of scams.
Students should be very well aware of the growing problems of identity theft as most of filers have discovered that identity thieves had (so badly) beaten them to their refunds. To avoid any potential scams, students should file their taxes electronically using the official website of IRS.
8. Do not forget to sign & date your return.
The most common tax filing mistake is forgetting to sign & date your tax return. E-filing helps in reducing errors by double-checking return & decreasing the chance of an audit.It's necessary to always proofread when filling out official documents. The second most mistake from all filers come from not reading the instructions properly. Crosschecking your math & proofreading for omissions can make huge difference in the end.