If you’re a student, taxes might not be at the top of your to-do list. Between classes, exams, and part-time jobs, filing taxes can feel confusing and overwhelming. But understanding how taxes work can help you save money and avoid problems down the road.
Here’s what every student should know about filing taxes.
1. Do Students Have to File Taxes?
Not all students are required to file taxes. It depends on how much money you made during the year and where that income came from. You generally need to file a tax return if:
- You earned more than $13,850 from a job in 2023 (single filers).
- You had more than $1,250 in unearned income (such as dividends, stock sales, or interest).
- You had taxes withheld from your paycheck and want to get a refund.
Even if you’re not required to file, you might still want to—especially if you’re owed money!
2. Can Your Parents Still Claim You as a Dependent?
If you’re under 24 and a full-time student, your parents may still be able to claim you as a dependent on their tax return. This means they get tax benefits for supporting you, but it also affects whether you can claim certain deductions or credits on your own return.
You can’t claim tax credits like the American Opportunity Credit or the Lifetime Learning Credit if your parents already claimed you. Talk to them before filing to make sure you’re on the same page.
3. What Tax Forms Do Students Need?
Students may receive different tax forms, depending on their situation:
- W-2 – If you had a job, your employer will send you this form showing your wages and how much tax was taken out.
- 1098-T – If you paid tuition, this form shows how much you spent and whether you qualify for education tax credits.
- 1099-NEC or 1099-K – If you did freelance work, gig jobs, or sold items online, you might get one of these forms.
Make sure you keep track of these documents for tax filing.
4. What Tax Credits and Deductions Can Students Claim?
Students can save money on their taxes by claiming credits and deductions, such as:
- American Opportunity Tax Credit (AOTC) – Worth up to $2,500 for tuition, books, and school fees (for undergraduates).
- Lifetime Learning Credit (LLC) – Up to $2,000 for tuition and education expenses (for part-time or graduate students).
- Student Loan Interest Deduction – If you’re paying student loans, you can deduct up to $2,500 of the interest you paid.
These can help lower the amount of taxes you owe—or even get you a refund!
5. How to File Taxes as a Student
Filing taxes can be easier than you think. Here’s a simple process to follow:
- Gather your documents – W-2s, 1098-T, 1099s, and any receipts for education expenses.
- Determine if you’re a dependent – Talk to your parents if you’re unsure.
- Choose how to file – Use tax software (like TurboTax or H&R Block), a free IRS filing tool, or a tax professional.
- Submit before the deadline – The deadline is April 15, 2024 for 2023 taxes.
Final Thoughts
Even if you’re a student, filing taxes can be beneficial—especially if you’re eligible for tax credits or a refund. Take some time to understand your tax situation, and don’t hesitate to ask for help if needed.
Have questions? Drop them in the comments below!