Basic Tax Information for Students

student taxesCollege students are so busy these days. Aside from doing the usual things, such as completing homework and preparing for exams, there are so many other things that students get to do today. So when it comes to tax, it’s usually the last thing that students want to worry about. But even if you’re a student, you still need to be aware about taxes. Did you know that you might be eligible to receive tax benefits this year, such as a tax refund?

Yes! You’ve read that right. While studying in college can be stressful because of the so many things that you need to do, it can also be exciting if you’re aware about the endless of benefits you can get as a student. This is particularly true of you’re a working student. If you’ve undertaken some kind of paid work while you’re still in school and paid taxes, you could be entitled to a student tax refund and other education credit. If you’re in the U.S., you could be one of those hundreds of students that has around $800 left unclaimed. Just imagine what you could buy with that amount!

While we can’t provide you any specific tax advice, we’ve listed here some information that you might find useful.

How do you know if you can claim a student tax refund?

As long as you’re a student who earns salary, whether from a full-time or part-time job, you might be eligible to claim tax refund. Chances are your employer might be withholding too much in taxes from your paycheck. If you think that your tax withholding is too high, you can contact your employer to check it and once corrected, you can then claim your refund.

However, keep in mind that in order to claim such benefits, you have to properly file your tataxx return. Typically, students who are employed (whether part-time or full-time), self-employed, and have stocks, bonds, or other forms of investments are required by law to file tax return. International students and students who are receiving scholarships and other grants are also required to file tax returns.

How to file tax returns?

If you’re employed, your employer will typically be the one responsible for controlling your taxes. Your tax is automatically deducted from your payslip. If you’re self-employed, you may download forms from the IRS website, complete them with correct details, and file them by mail. If you have stocks and other types of investments, you will automatically receive tax forms from the company that manages your accounts. Similarly, you would need to fill out the forms with correct details and mail them to the tax authorities.

If this is your first time to do this, and have no idea how to get started, seek further tax preparation assistance. You can call a certified public accountant (CPA) or consider using tax preparation service like Sprintax, to help you regarding your tax return.

How much does it cost to file tax return?

If you file your tax return by yourself, you won’t need to pay anything. It’s absolutely free! But of course, if you hire the service of tax professionals, you will be charged a fee.