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Why Do College Students Have to File a Tax Return?

Why Do College Students Have to File a Tax Return?
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The Internal Revenue Service will force you to file a tax return if your income must be sufficient. Many college students who are not recognized for their high incomes may need to earn more to support themselves. However, even people who do not earn enough to be legally obligated to file may choose to do so. Why? Reimbursement could be forthcoming. Find out below if you are required to file a tax return this year and why you may want to file anyhow.

Why Do College Students Have to File a Tax Return?

(Photo: https://unsplash.com/)

Student tax return preparation can be tricky. It is a beast on top of your other responsibilities, what with all the forms and details. You may be filing your taxes for the first time and want to know how much you owe. Or, you’ve returned to school later in life and are curious about how your status as a student affects your taxes.

Reasons why it’s a good idea to “tap the brakes” and file in March

Even though you might want your refund sooner, tax professionals advise having all of your tax documents ready before filing your return. Each year, businesses transmit copies of these forms to you and the IRS, making it simple for the latter to identify returns that lack certain data.

When these facts are omitted, the IRS often sends an automated notification that can delay processing or take some time to address, he said.The majority of tax forms arrive by late January or early February, although some can arrive later.

Avoid tax-related identity theft by “filing before the thieves.”

It’s okay to hold off if you have all the required paperwork. The possibility of tax-related identity theft is one reason to file as soon as possible. Eric Bronnenkant, a CFP and certified public accountant at Betterment, a digital financial advisor, asserts the following.

When someone files a tax return and receives a false refund using your Social Security number, that is tax-related identity theft. The IRS lists a few warning indicators, such as a rejected tax return or an IRS letter, as ways to learn more.

It’s wise to file early, according to Bronnenkant. But he added that registering for an identity protection PIN, or IP PIN, a six-digit password for filing your return, is one approach to safeguard yourself.

The drawback is that the IRS will send you a new IP PIN each year, which you may either remember or retrieve online.

 

Find Help Filing Taxes on Campus

Some institutions provide free financial education through a student money management center, which may include tax preparation advice. If you still need a toy, check out if your school offers financial education classes.

Moreover, as part of the Volunteer Income Tax Assistance (VITA) program, the IRS collaborates with institutions across the country. VITA provides tax return

advice to anyone with a disability, limited English proficiency, or an annual income of less than $58,000. You can utilize this program or receive training to become a volunteer yourself.

No longer will tuition and fees be deducted from taxable income in 2021. You might be eligible for a student tax credit if you paid tuition or other qualified educational costs. Form 8863 is used to compute and claim credits.

Read More: Will Californians receive additional inflation relief cheques or Middle Class Tax Refund?

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