Learn more about the different types of education tax credits, how they work, and whether you qualify. TurboTax offers a Free Edition designed for individuals with simple tax returns. College students who earn income from a part-time job and file with a W-2 form are likely eligible to file using free TurboTax.
TurboTax offers a student-friendly filing experience complete with guided assistance for students filing independently or as a dependent. We’ll guide you through entering important forms—like Form 1098-T and 1099-Q. And we’ll maximize your education credits and deductions to get you the biggest possible refund.
Is it Better to Get Your Taxes Done or Do Them Yourself? (And Other Tax Questions Answered)
However, if you are a student Uber driver, work part-time, or have income from investments, then your taxes are not so simple. In that case, TurboTax is not free and they recommend their Premium edition (which costs more) to maximize potential deductions. Yes, but only if you have simple taxes, and not all taxpayers qualify.
You can switch back and forth between TurboTax online and the app seamlessly. The goal is to get the features you need — without paying for upgrades you don’t. You can come to TurboTax and get your taxes prepared in one meeting while a TurboTax Live Full Service expert who specializes in self-employed taxes prepares your tax return. Under the American Rescue Plan, changes were made to Form 1099-K reporting requirements for TPSOs that process credit/debit card payments or electronic payment transfers. The change was to take effect with transactions starting tax year 2022 and lowered the reporting threshold by third party payment processors to over $600 but the IRS announced another delay.
Thank you for helping us improve the TurboTax Community!
- Use IRS Form 8863 to calculate both the American Opportunity Tax Credit and Lifetime Learning Tax Credit (including the refundable portion of the American Opportunity Credit).
- There are several discounts and free filing options available for those who qualify.
- Even if you don’t use the full credit amount, you still won’t receive the excess as a refund.
- On the other hand, your earning potential can increase significantly as your level of education increases.
- These are just a few trends that can impact Gen Z taxes and why TurboTax is making a concerted effort to help.
- You’ll need to sign in or create an account to connect with an expert.
As a result of this delay, TPSOs will not be required to report tax year 2023 transactions on a Form 1099-K at the lower amount of over $600. This means that for tax year 2023 (the taxes you file in 2024) the existing 1099-K reporting threshold of the aggregate of more than $20,000 in payments and over 200 transactions will remain in effect. TurboTax simplifies student tax filing, guiding you every step of the way. Qualified tuition programs (QTPs), or 529 plans, are tuition programs that have been qualified and authorized under section 529 of the Internal Revenue Code. With tax advantages and potentially other incentives, 529 plans make it easier for families to save for a child’s college education. The full amount of the credit is available to individuals whose modified adjusted gross income (MAGI) is $80,000 or less ($160,000 or less for married couples filing a joint return).
Who can claim the Lifetime Learning Tax Credit?
In addition to hosting on-campus events, TurboTax is also partnering with college students and facilitating peer-to-peer tax education via forty college campus ambassadors throughout the country. Though contributions to 529 plans are not tax deductible on federal returns, many states offer state tax deductions or credits. The advantages include no income limit for the contributors, your investments grow tax-deferred, and tax-free withdrawals when used for qualified education expenses. As a college student, you may still qualify for a tax deduction of up to $4k, even if you get grants, loans, or a scholarship.
Of the two education tax credits, the American Opportunity Credit is the more valuable credit (up to $2,500 per student), but it’s generally available to fewer people. Finally, users can file state tax returns through TurboTax for an additional fee in most cases. However, some states offer free filing options, so it’s worth checking local requirements before paying for the add-on. If you received a paycheck at all in 2012, even working part time, you probably had taxes taken out.
- You can switch back and forth between TurboTax online and the app seamlessly.
- Our TurboTax Tax Trends Report revealed Gen Z changed employers at a higher rate in tax year 2021 and young single filers were more likely to see an increase in their income in both 2020 and 2021.
- Under the American Rescue Plan, changes were made to Form 1099-K reporting requirements for TPSOs that process credit/debit card payments or electronic payment transfers.
- You can use the TurboTax Student Edition for your maximum tax refund, and free Federal e-file with every edition.
- In TurboTax, the taxable scholarships and grants are entered in the education section of the software and will be reported on the proper schedules and forms.
The maximum Lifetime Learning Credit is equal to 20% of the first $10,000 of qualified education expenses paid for all eligible students. You can claim the Lifetime Learning Credit for qualified education expenses turbotax for college students paid during the tax year for yourself, your spouse, or a dependent (such as your child). There are no limits on the number of years you can claim the credit, and you can claim the credit for just one or two classes (so there’s no half-time student requirement). The student doesn’t have to be enrolled in a degree program, either. Features like document import and deduction-finding tools can help maximize your refund, but it’s important to consider whether you actually need the higher-tier upgrades or expert help. Not every filer will benefit from these paid add-ons, so review your tax situation carefully before choosing a version.
Help and support
It’s free to practice filing your tax return and it’s free to see which tax credits and deductions you’re eligible for. When your ready to file your taxes, as a student, chances are high that you qualify for the Federal Free Edition; meaning you don’t have to pay to file your federal tax return. But if you’re not getting any benefit from claiming your child because of your income, then you should have your child file their taxes, especially a lot of college students.
For those seeking additional help, TurboTax Live connects users with tax experts for real-time assistance. This service is ideal for complex returns but comes at an added cost, which may not be worthwhile for simpler filings. Watch this video to learn about the top college tax deductions and credits for students and parents.
The following TurboTax Online offers may be available for tax year 2024. Intuit reserves the right to modify or terminate any offer at any time for any reason in its sole discretion. Unless otherwise stated, each offer is not available in combination with any other TurboTax offers. Certain discount offers may not be valid for mobile in-app purchases and may be available only for a limited period of time. Ultimately, the goal is to simplify your tax season — not add unnecessary costs. With the right version and a clear understanding of your needs, TurboTax can make filing your taxes a streamlined and stress-free experience.
TurboTax features that help maximize your tax refund
In some cases, you may also be required to file, depending on your income, filing status, and other factors. Even if someone claims you as a dependent, you may still need to file taxes based on your income, filing status, and marital status. Filing separately could also be a smart move if you’re eligible for a tax refund or certain refundable tax credits. It’s also not allowed for education expenses used to calculate other tax deductions, credits, or exemptions (again, like a tax-free distribution from a 529 plan or a business expense deduction).
Most students can file Federal and State taxes for free until March 15th with the Free Edition. College students may also use the IRS Free File Program which is also completely free for those who qualify. A 529 plan can be used to cover tuition and other eligible education expenses—like supplies, books, materials, and other fees. These plans can also cover room and board if the plan beneficiary is enrolled at least half time in a qualified program. Tax breaks for college students can lower your tax liability or potentially get you a refund.
How to File Taxes as a College Student
Camp TurboTax exemplifies Intuit’s mission of powering prosperity for all. By investing in student leaders, we’re not just raising awareness of our services; we’re fostering a generation of financially empowered individuals who can take control of their future. Whether it’s through personalized tax guidance or opportunities like Camp TurboTax, we’re proud to stand alongside students on their journey to success. Working with ambassadors like these underscores our dedication to financial literacy among students. By partnering with passionate and influential college leaders, TurboTax ensures that more young adults are aware of the tools and resources available to navigate their finances with confidence. Ambassadors play a key role in spreading our message by engaging their peers in real-world conversations about the importance of financial wellness.
0 Comments