Filing taxes for college students

The idea of filing taxes can seem very daunting to most. Some individuals do not think it is important to file their taxes and skip filing. However, if taxes are owed, skipping filing could result in a fine or even jail time.

“Taxes provide revenue for federal, local and state governments to essential services that benefit all citizens.” said Hollee Hansen, Community Outreach Coordinator for United Way of Northwest Florida. “On a more personal level, it is important to file because you may be entitled to a refund that you are not aware of.”

For the  individuals who do want to file, many do not know where to begin, especially when filing for the first time. This is why one group at United Way of Northwest Florida is offering services to help with the process and ensure tax filing is being done the correct way the first time.

The Dollar $mart Coalition is offering Volunteer Income Tax Assistance, otherwise known as VITA, until National Tax Day on April 18. This is a free income tax preparation service that is offered to individuals who make $64,000 or less annually and offers many tips to help ensure tax filers get the most money back possible.

Officials with United Way of Northwest Florida say the first thing to remember when filing your taxes is to bring a photo ID of yourself and your Social Security Card or ITIN letter. Without these, your identity can not be proven and you can not file. You should also remember to bring a voided check or banking information, W-2s from all of your employers, all 1098 or 1099 forms, including: 1099-INT or 1099-DIV from banks or brokers, a record of tuition and fee payments from your college, form 1098 from your mortgage lender, form 1099-G from the state or local government, form 1099-R for pension and retirement income, form 1099-MISC for other income, and form 1098-T from educational institutions. Nonresidents should bring a form 1042-S for treaty-exempt or other income if applicable. A copy of last year’s tax return is also helpful to bring.

For college students, there are many tax credits and deductions which may be filed in order to get a greater return. According to the Internal Revenue Service’s website, IRS.gov, “a tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself.” One such credit is the American Opportunity Credit, or AOE, which is based on the total income of the individual, has a value of up to $2,500, and can be received for four tax years. To be eligible for this credit, the individual must not have received their bachelor’s degree before 2016. Another credit that may be received is the Lifetime Learning Credit. This credit may be awarded in the amount of up to $2,000 and is available to anyone completing post-secondary education. Unlike the AOE, this credit does not have a limit on the number of tax years for which it may be received.

Hansen says the most important thing to remember when filing your taxes is, “You are not alone. There are many resources out there to assist you in filing your return. www.IRS.gov is a great resource tool that can answer every tax question that you may have. There are lots of forms and publications that can provide you with detailed instructions on any tax situation you may face. It will also provide you with many free tax preparation and  electronic filing options including local VITA sites.”
VITA representatives have a local office located at the A.D. Harris Learning Center located at 819 East 11th Street in Panama City. Their office is open Wednesday through Friday from 9:00 to 4:00 and Saturday from 8:30 to 12:00. For more information on VITA or other filing alternatives, call (850) 381-4988 or (850) 215-6753.

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