Many college students have grown up hearing their parents and the media complain about the headache of tax season. Now that many of these students are on the brink of adulthood, the time to start thinking about filing is sooner than they think.
Here are a few tips from NerdWallet, that can help #FirstTimers file their taxes:
1. Always file if you have had taxes withheld from your paycheck. The law states that a dependent student who earned an income less than $6,100 in a tax year is not required to file taxes. However, by not filing you are essentially giving the IRS a donation.
2. You cannot claim tax exemptions if you are a dependent. Knowing your status as a dependent on your parents' tax returns is crucial to filing your taxes properly. Dependents cannot claim any exemptions when filing their own taxes, so check with your parents before filing your taxes.
3. Take advantage of free tax assistance at your college. Many colleges offer tax assistance for their students. Call your counselor's office to find out if it is available at your school.
4. Start preparing early. The deadline to file is April 15, but it is important to begin well before that date. Starting early allows you to seek guidance and acquire the required documents.
5. Don't pay to file taxes. College students are eligible to use the IRS tax filing software at no cost.
6. Do not overlook deductions for your education. Be sure to look into education tax credits and earned income tax credits.
Follow Unity One on Twitter @UnityOneCU for more updates to our #FirstTimers series.
ABOUT UNITY ONE CREDIT UNION
Established in 1927, Unity One Credit Union is the oldest credit union in Texas. A member-driven and not-for-profit cooperative, Unity One CU served the employees and families of the BNSF Railway for 70 years. However, after transferring its corporate headquarters to Fort Worth in 1998, the credit union expanded its field of membership to include other non-railroad companies, organizations and individuals.
Today, anyone who lives, works, worships or attends school in Fort Worth, Blue Mound, Saginaw, Haslet, Keller, Colleyville, Bedford, North Richland Hills, Southlake, St. Paul, MN and Kansas City, KS may apply for membership. Unity One CU has seven branches to serve over 30,000 members nationwide. For more information about Unity One Credit Union, visit www.unityone.org. Think outside the bank.™ www.unityone.org