Taxes are due April 15 and most U.S. citizens or permanent residents who work are required to file a tax return. Even if not required, students could still be eligible for a refund via refundable tax credits.
Students may file as dependents or independents, based on their eligibility. A dependent is “a qualifying child or relative who relies on you for financial support,” according to the IRS. To determine if you qualify as a dependent or need to claim someone as a dependent, check the IRS website’s dependent page. An independent is someone who cannot be claimed on anyone else’s tax return.
There are a host of online filing services available for students, including the IRS Free File.
The IRS Free File helps taxpayers with an adjusted gross income of $84,000 or less “prepare and file their income tax returns online using guided tax preparation software,” according to its website. Taxpayers who do not qualify can still use the Free File fillable forms, although these forms are not able to be used for state tax returns. Services like H&R Block and TurboTax offer free and discounted filing options.
Filing taxes requires important forms, including the 1098-T, 1040, W-4 and W-2.
1098-T Form
According to the IRS, the 1098-T is a tuition statement that all “eligible educational institutions file for each student they enroll and for whom a reputable transaction is made.” The form allows a student, or a person claiming the student as a dependent, to claim an education credit on their tax return.
UCCS students can locate their 1098-T forms in their myUCCS student portal under Student Financials.
According to the Bursar Office’s website, forms are only available if the student has “a valid, active home/mailing address on file at UCCS” and has “paid tax-reportable tuition, fees or financial aid transactions on your account for that calendar year, including prior-year adjustments.”
The form reports paid tuition, mandatory student fees, paid course and lab fees, waivers, scholarships and grants. The 1098-T form does not report the Colorado Opportunity Fund, student loans, room and board expenses, fines, and tuition and fees for non-credit courses.
1040 Form
According to the IRS, the 1040 form is used by U.S. taxpayers to file an annual income tax return. This form reports all income, including tax and credits, payments made, and the refund or amount owed on an account.
Taxpayers are responsible for including the correct tax on their taxable income, which can be found by using a tax table, provided by the IRS.
Credits include standard and itemized deductions. Standard deductions are listed to the left of line 12 on the form. Itemized deductions can be found using Schedule A of the 1040 form.
In addition to the standard form, the 1040 has three accompanying schedules to report extra tax information. Schedule 1 is used to report additional income and adjustments to income. Schedule 2 is used to report additional taxes. Schedule 3 is used to report additional credits and payments.
Payments refer to the federal income tax withheld and additional tax credits.
W-4 Form
The W-4 form indicates the amount of federal income tax an employer should withhold from an employee’s pay. According to the IRS, employees should complete the W-4 form so their employers can withhold the correct income tax from their paychecks.
The IRS offers a tax withholding estimator on their website. To use it, taxpayers need all their pay stubs (if working multiple jobs), additional income information from things like self-employment and side jobs, and the most recent tax return. Taxpayers can also choose to withhold extra taxes each pay period to ensure a refund.
W-2 Form
According to the IRS, the W-2 is a wage and tax statement that employers must file for any employee that has income, social security or Medicare tax withheld from their paychecks.
Employers are required to provide their employees with their W-2 by Jan. 31, or early February if sending by mail. The W-2 form is essential when filling out 1040 forms.
Students can find out if they are required to file taxes by checking the IRS requirements.