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It is very important that you file taxes even as student. There are several things to keep in mind as you file for the first time.
TaxCrisisInstitute-Filing Taxes for the First Time Brief Description: It is very important that you file taxes even as student. There are several things to keep in mind as you file for the first time. College students As a college student you are probably very busy with academics, work, extracurricular activities, and social struggles. When February comes, taxes are added to this list. This may be very stressful and you may feel a lot of anxiety if you are doing your taxes on your own for the first time. Fortunately, you can look up pretty much any question you have online and there will be an answer for it. Of course, you will want to make sure that the answer comes from a legitimate source or you could be misled. In addition, you can always call your parents or another trusted adult for help in filing your taxes. Most students do not have to pay any taxes and they will get all of their income tax back. However, it is still a good idea to file for a refund or you will not get your money back. The second thing you should remember is that it is always better to file your taxes earlier rather than later. Try to get it taken care of as soon as you receive your W-2 form. This way you will not be trying to finish your taxes correctly when April finals come around and you should be studying. The first time it is best to schedule an entire weekend to your taxes so you will not feel pressured to familiarize yourself with tax code in a short period of time. In addition, it is guaranteed that your tax forms will not take that long to fill out, so you will have extra time to study or to have fun. By planning extra time, you will be able to take a break when you get tired of thinking about numbers. Double check the numbers This is important because after a while the numbers can mesh together and it can be easier to make a mistake. You will also want to make sure that you have the time to double check the numbers that you come with. If you make a mistake, the IRS could charge you a significant amount. You want to make sure you take enough time to make sure you do it correctly. It is a good idea to triple check your taxes and to have your partner check it before you send it off. It is also a good idea to fill out all of the numbers on a paper print out of the tax sheets before you fill out the real paper version or the online version. This way it is easier to keep track of what you have done and you force yourself to check the numbers again as you enter them. As a student, you will also want to check to see if you are eligible for any of the government help programs. One of these is the hope scholarship credit. The hope scholarship credit will provide up to 100 percent of your first $1,000 in tuition and other school related fees. It may also give you up to 50 percent of the second $1,000 of these fees. This discount is only given to those who are in their first two years of college. The lifetime learning credit is another credit that may give you up to 20 percent of your tuition and certain school related fees back, but only up to $10,000. The higher education expenses deduction may provide you with as much as $4,000 if your family meets the earning guidelines. Your family must make less than a certain, specified amount and you must be in school to be eligible for this one. These things provide discounts, but they do not necessarily guarantee you a refund. Keep documentation Throughout the year, you will want to make sure that you keep all documentation of scholarships and grants that you have received as these things will affect how you report your taxes. You will also need receipts for any medical expenses that you have as well as for books and rent. These things can also help you qualify for deductions. Other costs, such as car insurance and so forth are also good to keep track of, even if you do not need it for taxes, they can be handy later. It is a good idea to set up a file where you can put all of these things can keep them organized. This will help make sure these things do not get lost and it will help make taxes a simpler and easier process. Remember to get help if you need it. Photo credit: JD Hancock, 401(k)2013
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