Tax Tips for College Students

It’s time to get ready for tax season! The first step you can take is to visit the IRS site to find out whether you need to file. Tax season brings unhappy thoughts into most minds, but when you’re a student, it can be a good thing. Most students aren’t required to pay taxes, so anything that was withheld will be refunded to you. Unless you claim exempt on your W2 form at work, taxes are withheld from your paycheck. Some people even fill it out so the IRS takes out more than they should so they can get a bigger refund.

Filing isn’t tricky either. Services like TurboTax make things so much easier. If you’ve paid interest on any student loans, you can claim some of them as a deduction. While this doesn’t help students who don’t have to pay taxes, it is helpful for those who do and for those who are out of college.

Tax Tips for College Students

Preparing your return

  • TurboTax, which is made by powerful software company, Intuit, is the leading tax preparation software. The basic edition is $20, but there’s also a free online edition for 1040EZ filers (most common, unless you’re utilizing deductions, you’ll most likely fall under this category).
  • IRS eFile – The IRS allows you to prepare and file your tax return electronically.
  • Major Tax Preparers: H&R Block, Jackson Hewitt, etc. – These tax preparation companies are another alternative to filing for yourself, but if you’re a student, your return isn’t going to be complicated and these places aren’t cheap. Not a good idea for most people.

Filing

  • Mail – you mail it off, it’s free, but it can take up to six weeks for your refund
  • TurboTax e-file with direct deposit – $14.95, can get your refund in 9 days
  • IRS FreeFile – if you qualify for FreeFile (made $66,000 or less), you can file your return electronically with the IRS for free. You can set up direct deposit and get your return in 10 days.

Websites to help you out