Many college students have jobs. The ones who donâ€™t often have income in the form of stipends. It is important to know the different types of forms available to you, and which form will be best. When in doubt, consult a Denver accountant before filing your tax return.
There are three major tax forms for people who have income: the 1040, 1040A, and the 1040EZ. Which of these forms should you use as a student? If youâ€™re filing for the first time this year as a student, donâ€™t file the same type of return as last year. File the 1040A
. Hereâ€™s why:
- It has a section for income, including -
- Taxable Scholarships
- Fellowship Grants
- It has a slot for your student loan interest deduction
- The student loan interest deduction is for students who made payments on their student loans throughout the tax period.
- Space for a tuition and fees deduction
- Tuition and fees deductions are great, but one of the education credits may be more beneficial to you - seek professional advice if necessary.
- Plus the slot for the child and dependent care credit
- You can claim the child or dependent credit if you are responsible financially for the child or dependent (relative or spouse).
If you are a student and you are self-employed, you cannot use the 1040A. You must file a regular 1040. Find an accountant to go over all of your options so you can claim the max credits and deductions on your 1040 like you could on your 1040A. The layout is different.
If you had no income this year, you should determine if you qualify for one or more of the education credits available to students. If you qualify for any credits that are fully or partially refundable, you will get a refund, even if you had no income or did not pay any taxes for the taxable year.
To learn more about the education credits and deductions available to students, please refer to our post Understanding Education Tax Credits and Deductions for Denver Students
! This is a comprehensive list of all of the tax credits and deductions available to students attending college for their undergraduate studies.
In order to claim your education credits, you need to attach the form 8863 and submit it along with your 1040A. If you look at the form, you will see that it makes it relatively simple to claim education credits and deductions. It has them broken down into categories, and is pretty easy to understand. Of course, if you have any problems, Bloch, Rothman, & Associates is here for you. We are experts at helping students file tax returns and help them get the best refund possible based on their income and their student status. Reach out to us as soon as youâ€™re ready to get started on filing your taxes!
Need a tax return amended? Forget a form? Call us as soon as you can at 303-321-7160 to get the correction process started!