Do Students Have to File Their Taxes?

Students often find tax filing requirements confusing, especially when balancing academic life with part-time jobs or other income sources. Understanding whether you need to file a tax return depends on several factors, including your income, the type of income received, and your dependency status. It is not simply about your age or whether you are enrolled in school.

Determining Filing Requirements

Whether a student must file a federal income tax return primarily depends on their gross income and dependency status. For the tax year 2024, a single dependent generally must file if their earned income exceeded $14,600, or if their unearned income was more than $1,300. A filing requirement also exists if their gross income, which is the sum of earned and unearned income, was greater than the larger of $1,300 or their earned income up to $14,250 plus $450.

Gross income includes wages from a job, taxable scholarship or fellowship grants, and investment income such as interest or dividends. Even if a student’s income is below these thresholds, other situations can trigger a filing requirement. For instance, if a student had net earnings from self-employment exceeding $400, they are required to file to report and pay self-employment taxes. This also applies if they owe any special taxes, such as alternative minimum tax or uncollected Social Security and Medicare taxes on tips.

Reasons to File Even When Not Required

Even if a student is not legally obligated to file a tax return, doing so can be financially beneficial. One common scenario is when federal income tax was withheld from their paychecks by an employer. This often occurs when students work part-time and their annual income does not reach the taxable threshold, but taxes were still deducted from each pay period.

Students may also qualify for education tax credits that can reduce their tax liability or even result in a refund. The American Opportunity Tax Credit (AOTC) can provide a credit of up to $2,500 for qualified education expenses, with 40% of the credit being refundable. The Lifetime Learning Credit (LLC) offers a credit of up to $2,000 for qualified education expenses, although it is nonrefundable. Filing a return allows eligible students to claim these valuable credits, potentially lowering their tax bill or increasing their refund.

Some students might also be eligible for the Earned Income Tax Credit (EITC), especially if they are older or independent with qualifying earned income. This credit is designed to help low-to-moderate-income workers and families. While less common for typical dependent students, other refundable credits could also apply.

Information Needed for Filing

Gathering necessary documents and personal information streamlines the tax filing process. You will need your full legal name, Social Security number, date of birth, and current mailing address.

For income reporting, several forms are essential. If you worked as an employee, your employer will provide a Form W-2, detailing your wages and taxes withheld. If you performed freelance work or were an independent contractor, you might receive a Form 1099-MISC or Form 1099-NEC. Investment income, such as interest or dividends, is typically reported on forms like 1099-INT, 1099-DIV, or 1099-B.

Education-related documents are also crucial for claiming credits or deductions. Your educational institution should issue a Form 1098-T, Tuition Statement, which reports qualified tuition and related expenses. Keep records of other qualified education expenses not listed on the 1098-T, such as books, supplies, or equipment. Have your bank account and routing numbers ready for direct deposit of any refund, and if filing electronically, your Adjusted Gross Income (AGI) from the previous tax year might be required.

How to File

Students have several options for filing tax returns. Commercial tax software programs or free online filing services are common choices. The IRS offers a Free File program for taxpayers whose AGI falls below a certain threshold. These platforms prompt users to enter information from their W-2s, 1099s, and 1098-Ts.

After inputting all relevant data, the software calculates the tax liability or refund. Review the entire return for accuracy before submission. Most online services allow for electronic filing, which expedites receiving a refund. Upon successful e-filing, you will typically receive an email confirmation that your return has been accepted by the IRS.

Alternatively, students can choose to hire a professional tax preparer, who will complete and submit the return on their behalf. For those who prefer a traditional approach, returns can also be prepared manually using IRS forms and then printed and mailed to the appropriate IRS address. Regardless of the method, meeting the annual tax filing deadline, April 15th, helps avoid potential penalties.