Do I Have to File a Tax Return as a Student?

If you were a student over the past year at college, you may be wondering if you have to file a tax return or if you can simply be claimed as your parents’ dependent. Working with a tax professional or accountant, such as EB TAX CONSULTANTS in BROOKLYN, NY, you can determine if you need to file a tax return and what address you should use to file your return.

As we know, when you are a student, you may be living on campus or in another off campus apartment throughout the school year. For most of these students, however, you will be filing as a resident of your parent’s home unless you change your address and make changes to your residency. If you do, then you may no longer be considered a dependent of your parents.

However, even if you are a dependent of your parents, you may still want to consider filing your own return. For example, if you had a net self-employment income of over $400 or unemployment income, then you are required to file a tax return. There are other items that will require you to file a return as a student, so you will want to discuss these with your tax professional to determine if you qualify.

If you do need to file a return, you can file either a Form 1040, 1040A or a 1040EZ. However, if this is your first year filing, you will not be able to efile your return, but must file a paper return with the IRS. Once you have filed for the first year, then you will be able to efile going forward.

What If I Want to File with My Parents?

In order to file with your parents, there are several conditions that you and your parents need to meet. Here are those conditions, all of which must be met:

• If you were under 19 or under 24 as a full time student by the end of the year.
• The only income you receive is from interest and dividend payments, including payments from the Alaska Permanent Fund.
• Your gross income was under $10,150.
• You are not filing a return yourself or a joint return.
• No estimated tax payment was made for this year and no tax overpayment was made from the previous year or amended tax return in your name or Social Security Number.
• No federal income tax was taken out of your income under the backup withholding rules.

As you can see, the IRS is very specific regarding the requirements that would allow you to be claimed on your parents’ return. Discuss with your tax professional the options available to your family, including what you may or may not be eligible for.

Types of Income that is Reportable and Taxable

If you are a student, you still are required to report your taxable income. This includes income from being self-employed, which will mean that you need to pay the appropriate Social Security and Medicare taxes for that income. You may also be required to pay those taxes on any tips you received throughout the year that you did not report to your employer.

If you received income from the following sources, then it would be considered taxable and you will have to pay any tax liability that you may have incurred.

• Pay for services performed, such as wages, salaries, tips, ROTC duty pay
• Self-employment income over $400, such as lawn mowing, babysitting and newspaper delivery
• Investment income, such as interest and dividends received
• Scholarship and fellowship money that is not used for tuition, any kind of school fees or cost of required books and school supplies (additionally, you must be enrolled in an undergraduate degree program)

As a student, you may find that you have a variety of small income streams to cover your expenses. Working with a tax professional, you can combine all those income streams and determine what deductibles and credits you may qualify for when filing your return.

For students, you are going to have to determine if you qualify to file a return and then you will need to determine what are all of your income streams that are considered taxable by the IRS. Once you do so, then you can file your tax return!

Click on the link below to connect with a tax professional or accountant at EB TAX CONSULTANTS in BROOKLYN, NY, who can assist you in determining if you need to file a tax return this year.