The College Student's Guide to Filing Taxes Part One: Preparing to File

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Part One of this series will help you prepare everything you may need to file your tax return.

Tags: college-student, financial-aid, scholarships

The College Student's Guide to Filing Taxes Part One: Preparing to File

As a college student, filing your taxes is an overwhelming task. You may remember your parents stressing over taxes every year and might be intimidated by the idea of filing taxes for yourself. Remember to pause as you figure out whether you need to file taxes, what information to collect, what forms to fill out, and how to navigate the complexities of tax codes and laws. Fortunately, there is a plethora of information accessible to help you file your taxes correctly. With some knowledge and preparation, you can file your taxes without too much trouble and potentially receive a refund! Part One of this series will help you prepare everything you may need to file your tax return, and Part Two will provide some tips for getting through the actual filing process.

Do You Need to File Taxes?

The first step is determining whether you need to file a tax return. You may not be required to file taxes depending on your income level, dependency status, and financial aid situation. Remember that the taxes you file correspond to the income you earned in the previous calendar year, so as you file taxes in 2023, you'll be looking at your income from 2022. According to USA.gov, the IRS began accepting tax returns on January 23, 2023, and the deadline for filing your tax return is April 18, 2023. However, you may be able to get a filing extension if necessary.

Income Level

Usually, the most important qualification for determining whether you need to file a tax return is your income level. Generally, you must file a tax return if you earn more than the standard deduction amount for your filing status or if you earned more than a certain amount of "unearned income." For 2022, the standard deduction for a single filer is $12,950, while the standard deduction for a married couple filing jointly is $25,900. If you worked for an employer during the year, they will provide you with a W-2 form that outlines your earnings and taxes paid. If you worked as an independent contractor, you will receive a 1099 form instead. If you received financial aid or scholarships, you will receive a 1098-T form. Find these documents and see if your income for the year indicates whether you need to file taxes.

Filing Status

Before you file your tax return, you must determine your filing status, determined chiefly by your marital and dependency status. As a college student, you will likely file as a single individual unless you are married or have dependents. If you have one or more dependents yourself, this will impact your taxes, as you will file as a head of household, which involves a different standard deduction amount. Whether you are disabled also influences your filing status.

Dependency

As a student, you may qualify as a dependent yourself. A dependent is generally someone supported financially by another person, such as parents or a legal guardian. You can then be claimed on their guardian's tax return for various tax benefits. Typically, the guardian must provide more than 50% of your financial support, as determined by various IRS criteria, to claim you as a dependent. There are some exceptions and qualifications, so do some research to determine your status.

Remember that your status as a dependent may change while you are a student as you transition towards greater financial independence, so be sure to determine your status for each year you are in school. Whether you are dependent can influence many tax-related situations, including whether you need to file a tax return at all. The IRS offers online resources to help you determine your status regarding dependency if you are unsure.

Preparing to File

Once you have determined whether to file taxes for the year, ensure you have all the documents and information you need to file your taxes properly. There can be fines and/or penalties if your tax return is incorrect, so take the time to ensure you are set up to file your taxes correctly.

Gather Documents

Before you begin to prepare your tax return, make sure you have all the necessary documents. These may include your W-2, 1099, 1098-T, bank statements, and other relevant tax forms. You may need your last year's state and federal tax returns and any information related to retirement accounts, investments, or property ownership. You will also need your social security number.

If you worked in a different place than you currently live during the year, follow up with your employers to ensure that your tax forms are delivered to the proper address. Some employers may have the option for you to access your tax documents online, but many mail them to whatever address you entered when you first filled out your employee paperwork. As a student, this can make collecting your information difficult. You may need to check with your parents or former roommates if a W-2 could have been delivered to one of your previous addresses.

If a tax document didn't make it to you, you can contact your employer and request that they resend a document to a new address. Stay on top of collecting all your documents early in the year, so you have everything organized and don't need to file for an extension while you track down documents. Be aware of how living in multiple states could impact your income taxes, and collect relevant documents from states where you lived and worked.

Once you have all the necessary documents, you're ready to start filing your tax return! Double-check that the information on your documents is correct to the best of your knowledge and that you have personal information handy. This includes your bank account number, bank routing number, and identification documents. If you owe taxes or receive a refund, you'll need your financial information to make the payment process as seamless as possible. Now that everything is prepared move on to Part Two for tips for filing your tax return.

Mari Whitmore

Mari Whitmore recently graduated from a tiny private college in the middle of beautiful Wyoming. She spends her time traveling, adventuring in nature, writing, and working as a barista and bartender. Recently, Mari relocated to the gorgeous hill country of Central Texas. In her free time, she loves to hike, paddleboard, read, paint, watch movies, and gather with friends and family.

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