Students and Income Taxes

by | Nov 14, 2018 | Top Accounting Tutorials | 0 comments

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Students and Income Taxes

Important: Starting with Tax Year 2018 (Jan. – Dec. 2018), education related tax credits, deductions, and savings plans are changing due to Tax Reform. We will update this page as the IRS finalizes this information. Tax Reform and you? Let efile.com help you and become eligible to Tax Win. Find out now.

Important: Starting with Tax Year 2018 (Jan. – Dec. 2018), education related tax credits, deductions, and savings plans are changing due to Tax Reform. We will update this page as the IRS finalizes this information. Tax Reform and you? Let efile.com help you and become eligible to Tax Win. Find out now.

Student Income Taxes – Class 101: Income and age determine whether a person has to or should e-file a tax return more than job title or education status as a student. We spare you from reading over all the detail tax factors that stipulate if you should or should not prepare and file a return. Simply use the free and easy FILEucator tool below, answer a few simple questions, and you got the answer. Again, keep in mind that even if you don’t have to file a tax return, you might want to file a return as a young person or student.

Student Income Taxes – Class 101: Income and age determine whether a person has to or should e-file a tax return more than job title or education status as a student. We spare you from reading over all the detail tax factors that stipulate if you should or should not prepare and file a return. Simply use the free and easy FILEucator tool below, answer a few simple questions, and you got the answer. Again, keep in mind that even if you don’t have to file a tax return, you might want to file a return as a young person or student.

Start FILEucator Tool

Start FILEucator Tool

You might wonder if you should still file your own tax return if you are claimed as a dependent child or student by your parents or somebody else. The short answer is yes, you can. When you do prepare and file your own tax return, simply indicate on your tax return that somebody claims you as a dependent on their tax return (you will find a checkbox with that question on IRS Form 1040 or 1040-NR).

You might wonder if you should still file your own tax return if you are claimed as a dependent child or student by your parents or somebody else. The short answer is yes, you can. When you do prepare and file your own tax return, simply indicate on your tax return that somebody claims you as a dependent on their tax return (you will find a checkbox with that question on IRS Form 1040 or 1040-NR).

There are conditions that must be met in order for your parents to claim your interest and dividend income (including capital gains distributions) on their tax return, which would mean you would file with your parents. All of the following conditions must be met for them to do so:

There are conditions that must be met in order for your parents to claim your interest and dividend income (including capital gains distributions) on their tax return, which would mean you would file with your parents. All of the following conditions must be met for them to do so:

Visit this page for more information on whether or not to file a tax return as a dependent.

Visit this page for more information on whether or not to file a tax return as a dependent.

If you are a foreign student with nonresident status read this section about nonresident tax returns and Form 1040-NR.

If you are a foreign student with nonresident status read this section about nonresident tax returns and Form 1040-NR.

We have dedicated a section on taxable income and a section on tax free or non taxable income. If you have generated income that is not listed on either of these pages, please contact an efile.com Taxpert to get answers to your specific income and tax circumstances.

We have dedicated a section on taxable income and a section on tax free or non taxable income. If you have generated income that is not listed on either of these pages, please contact an efile.com Taxpert to get answers to your specific income and tax circumstances.

There are a few taxable income types specific for students. Keep in mind, this is not an all inclusive list. Check the links above for that.

There are a few taxable income types specific for students. Keep in mind, this is not an all inclusive list. Check the links above for that.

Non taxable student income

Non taxable student income

Tax or Income Reporting Forms 

Tax or Income Reporting Forms 

In summary, when considering a school or university you should ask the following questions when it comes to financial aid:

In summary, when considering a school or university you should ask the following questions when it comes to financial aid:

1. Find out if you as a college student qualify as a Dependent on your parent’s or somebody else’s tax return.

1. Find out if you as a college student qualify as a Dependent on your parent’s or somebody else’s tax return.

Start the DEPENDucator

Start the DEPENDucator

2. If you plan to prepare and file your own tax return, start on efile.com and the software will guide you through via simple tax questions. You will know your tax refund or taxes owed before you can complete and efile your federal and state tax return on efile.com. You don’t have to worry about which form or schedule to pick, efile.com does it all for you.

2. If you plan to prepare and file your own tax return, start on efile.com and the software will guide you through via simple tax questions. You will know your tax refund or taxes owed before you can complete and efile your federal and state tax return on efile.com. You don’t have to worry about which form or schedule to pick, efile.com does it all for you.

3. International , foreign students with non resident alien status. The IRS does have special rules for foreign and international students, scholars, teachers, and exchange visitors. The rules largely depend on the immigration status of the person (resident alien, nonresident alien, dual status alien) and apply to taxable income and tax withholdings. The assumption here is that your status in the US is that of a resident alien by holding a certain visa status. Beyond that, the rules for filing a tax return is based on income an international student generated in the US as a student. In addition, based on the country of your origin as an international student you need to check if there is a double taxation agreement between your country and the US.

3. International , foreign students with non resident alien status. The IRS does have special rules for foreign and international students, scholars, teachers, and exchange visitors. The rules largely depend on the immigration status of the person (resident alien, nonresident alien, dual status alien) and apply to taxable income and tax withholdings. The assumption here is that your status in the US is that of a resident alien by holding a certain visa status. Beyond that, the rules for filing a tax return is based on income an international student generated in the US as a student. In addition, based on the country of your origin as an international student you need to check if there is a double taxation agreement between your country and the US.

If you are in the United States on a F-1 student visa (and you don’t have a green card or don’t satisfy the substantial residence requirement), you usually file your federal tax return as a nonresident alien. Unless you elect to be treated as a resident alien for federal tax purposes, you cannot claim an education credit for any part of the Tax Year. If you are a U.S. nonresident alien, you should file Form 1040NR or 1040NR-EZ

If you are in the United States on a F-1 student visa (and you don’t have a green card or don’t satisfy the substantial residence requirement), you usually file your federal tax return as a nonresident alien. Unless you elect to be treated as a resident alien for federal tax purposes, you cannot claim an education credit for any part of the Tax Year. If you are a U.S. nonresident alien, you should file Form 1040NR or 1040NR-EZ

Currently, you can not efile 1040NR or 1040NR-EZ on efile.com. We assist you completing the form. Please contact one of our Taxperts here.

Currently, you can not efile 1040NR or 1040NR-EZ on efile.com. We assist you completing the form. Please contact one of our Taxperts here.

For a comprehensive overview on international, foreign students and taxes please read this IRS Publication 519-U.S. Tax Guide for Aliens.

For a comprehensive overview on international, foreign students and taxes please read this IRS Publication 519-U.S. Tax Guide for Aliens.

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