Chapter 5. Tax tips for college students
As a college student, what should you know to follow the process of filling out the forms? To help college students to understand the filing process, Penn State Sokolov-Miller Family Financial and Life Skills Center provides some tips as below.
How to
1. If you have earned income, file your tax form even if you are not required to file so that you can get taxes withheld back and/or Earned Income Tax Credit
2. Create a tax folder at the beginning of each year. Keep all tax related documents in the folder.
3. Practice doing your tax form with the paper form to maximize your understanding.
4. Discuss your filing status with your parents. If they are claiming you as a dependent on their form, you can't claim yourself and vice versa.
5. Generally, State taxes are paid in the state earned if you are attending college as an out of state student.
6. Understand form 1040 to build upon it for future filing
7. Understand credits that may apply to you.
8. Review your W-4 to ensure proper withholding for the year. Claim the correct allowances to meet your tax liability. Don't plan on getting a refund, but also avoid an underpayment penalty. Your goal is to "almost" break-even on settling your tax obligation each tax year.
9. Take personal responsibility when it comes to your money. Even if you seek professional assistance in completing your tax forms, take some time to fully understand what you are signing.
10. If in doubt, check IRS website (https://www.irs.gov/ Links to an external site.) or VITA (Volunteer Income Tax Assistance) at your school or in your community. Penn State students can refer to additional resources listed on the Financial and Life Skills Center Website https://financialliteracy.psu.edu/ Links to an external site. or visit the VITA center http://www.psuvita.org/ Links to an external site.
Practice
Now that you know what to do, think of paying it forward and discuss these tips with a friend or a family member.
Congratulations! Now Test your knowledge about Federal tax for U.S. individuals!
Would you like to review again? You can start over at Introduction.
To review the full module on Federal Tax for the US individuals, click here.
The Penn State Sokolov-Miller Family Financial and Life Skills Center hopes you have enjoyed this module in the MoneyCounts: A Penn State Financial Literacy Series. Please tell us how we can serve you better, leave us feedback, ask a question, or request additional information at: finlit@psu.edu