You are required to pay taxes and complete a tax return each year if you make over a certain amount of money. For example, in 2022, a single student without children had to file taxes if their gross income was at least $12,000. Each year, these income thresholds change. Find out current filing requirements on the IRS website.
If you paid any interest on your student loans during 2022, you can deduct up to $2,500 on your federal tax return. If you are single, your adjusted gross income on your tax return must be less than $85,000. You will need the 1098-E form from your student loan lender. Please check the IRS website for more current information.
Generally, scholarships and grants are not included on the federal tax return. But, if you have funds left over after paying tuition, fees, books, and supplies…then the remaining amount must be included on your tax return.
If you have a job on campus, then those funds must be included on your tax return. You will receive a W-2 from your college/university.
Yes, if you are pursuing a degree, you may qualify for an education credit. There are two types of tax credits that exist. These can be used by you on your own return or by the person who claims you as a dependent on their tax return. The person claiming the credit will need to complete tax form 8863 to determine eligibility.
You can seek help from a tax professional or use an online program that will walk you through the filing process.
Here is a list of free Tax filing software for Students:
Volunteers Income Tax Assistance (VITA) offers free tax guidance to anyone who lives with a disability, speaks limited English, or earns less than $58,000 a year.
Baker Ripley (formerly Neighborhood Centers) provides tax and financial services at 11 convenient locations throughout the Greater Houston area. Services are available to anyone who earns less than $58,000.
Tax resource by MoneyGeek provides additional information regarding tax credits and deductions for education, undocumented student tax forms (W-7), international student tax forms (1042-S and 8843), and tricky tax issues for military students.