Understanding Tax Obligations for Students
Being a full-time student does not automatically exempt you from federal income tax obligations. The factors that determine whether you need to file a tax return include:
- Income: The amount of earned and unearned income you receive
- Dependency status: Whether you can be claimed as a dependent on someone else’s tax return
- Filing status: Your marital status and other factors
- Age: Individuals under the age of 18 or 19 (depending on certain factors) have different filing requirements
Filing Requirements for Students
Even if you are not required to file a tax return, you may choose to do so if you are entitled to a refund of withheld income tax or estimated tax, or if you are eligible for a refundable credit.
To determine if you need to file a tax return, use the IRS’s Interactive Tax Assistant tool or refer to Publication 501, Dependents, Standard Deduction and Filing Information.
Exemptions from Withholding
As a full-time student, you may be eligible to claim an exemption from income tax withholding. To do this, you must complete a Form W-4, Employee’s Withholding Certificate, and submit it to your employer.
Estimated Tax Payments
If you are not having enough income tax withheld from your paycheck, you may need to make estimated tax payments during the year. This ensures that you pay your taxes evenly throughout the year and avoid penalties.
Tax Credits and Deductions for Students
There are several tax credits and deductions that may be available to students, including:
- American Opportunity Tax Credit: Up to $2,500 for qualified education expenses
- Lifetime Learning Credit: Up to $2,000 for undergraduate, graduate, and professional degree expenses
- Student Loan Interest Deduction: Up to $2,500 for interest paid on qualified student loans
Additional Resources
- IRS Publication 970, Tax Benefits for Education
- IRS Tax Topic 702, Education Credits and Deductions
- Jackson Hewitt Guide to Filing Taxes as a College Student
As a full-time student, it’s important to understand your tax obligations and take steps to ensure that you are meeting them. By filing a tax return when necessary, claiming eligible exemptions and deductions, and making estimated tax payments if required, you can avoid penalties and maximize your tax savings.
A Guide on Filing Taxes for College Students by Lexington Law
FAQ
How much money can a college student make before having to file taxes?
Can a college student file taxes if parents claim them?
Can a full-time student with no income file taxes?
What does the IRS consider a full-time college student?
Do college students have to file taxes?
Typical college students are early in adulthood and face some tricky questions when filing taxes. College students who are single and earned more than $13,850 in 2023 must file an income tax return. Students who earned less can file a return to get a refund of taxes that were withheld by their employer.
Can I get a tax refund if I’m a college student?
The **Internal Revenue Service (IRS)** provides tax information for students on their website .If you’re filing a tax return, you may need to include scholarships and grants as taxable income.
Can a full-time student file for tax purposes?
Being a full-time student for tax purposes can also affect situations like when a parent wants to file under “head of household” status. Even if someone is an adult in the sense that they’re at least 18, they could still count as what’s known as a “qualifying child” for tax purposes if they’re a full-time student under the age of 24.
Do I need to file a tax return if I’m a student?
Whether you’re a student or working full-time (or both), everyone must file a federal tax return if they make over a certain amount of income. The IRS will use income from all streams to land on your annual gross income. Earned income. This includes salaries, wages, tips, professional fees, and other amounts received as pay for work performed.