By Toma Lynn Smith
“If you’re in college, doing your taxes feels like one more final exam. But there’s one big difference. This grade is measured in cash,” stated Dana Dratch, a freelance writer, in “A Dozen Tips for College Students.”
Many students may avoid filing their taxes because they don’t think they make enough money.
If you are getting paid, the government sees that as taxable income.
“If you’ve had money withheld from paychecks, you’ve got a refund coming,” stated Dratch.
How much? It depends on how much federal income tax was withheld throughout the year.
William Young, a senior communication major, received a refund last year that was “quite small,” he said. He uses tax form 1040 EZ to file his federal taxes.
What tax form to use can vary from person to person. The Web site http://www.irs.gov is a very reliable resource for federal tax filing and to figure out what is best.
The site has lists of tax terms and many suggestions to help when preparing taxes.
In addition to federal, state taxes also have to be filed. Dratch stated, “If you’re going to college in one state and spending summers at home in another, you could have two states vying for your tax dollars.” A student should check with their parents, they probably have a lot more experience with filing taxes.
Carol Fautz, sophomore paralegal studies major, said her parents file her taxes for her, since she is a dependent. Knowing whether the status of the individual is dependent or independent is very important to know, as it will affect how to file.
“If your parents are paying more than 50 percent of your expenses, they are entitled to list you as a dependent on their taxes,” stated Dratch.
Determining whether to use the Hope Scholarship Tax Credit or the Lifetime Learning Credit, depends on how much was spent on education and the amount of income earned.
This may sound complicated so far, but don’t be alarmed, help is out there. The city of Louisville and the Louisville Asset Building Coalition will have help for those who are within a certain income level, according to the office of Louisville Mayor Jerry Abramson. For more information, visit http://www.louisvilleky.gov.
There are other options, however. There is software such as the highly advertised TurboTax available or contact a commercial tax service such as H & R Block, who also has software available.
This comes at a cost, but whatever the choice, it must be done.
The government is not going to let its taxpayers know if a refund is coming, this is the responsibility of taxpayers to find this out.
Another cost involved for doing taxes is time. Dratch suggested doing it over the weekend.
“You’ll have time to take a few breaks when you get tired and still be able to double check your numbers before you mail that return,” Dratch said.
Fautz said, “It seems hard,” but if you can make it through that math requirement for your degree, with patience this yearly task can be done.
Toma Lynn Smith is a junior majoring in English. E-mail her at features@louisvillecardinal.com.
