Student Tax Filing Guide 2024

Think you’re off the hook for taxes as a student? Not so fast. Here’s what you need to know:

Must file taxes if you made:

• Over $13,850 (single student)
• $400+ from self-employment
• $1,250+ in unearned income

Even if you earned less, filing could put money in your pocket through education credits worth up to $2,500.

Key Documents You Need:

• W-2s from jobs
• Form 1098-T from school
• Form 1098-E for student loans
• Scholarship award letters

Here’s the deal: Most students skip filing and miss out on refunds. Don’t be one of them. You can file for FREE if you make under $79,000 using IRS Free File.

Before you start: Check if your parents can claim you as a dependent. They probably can if you’re:

• Under 24
• A full-time student
• They cover over half your costs

Want the full scoop? This guide breaks down everything from scholarship taxes to common mistakes, with step-by-step instructions for filing your 2024 return.

Related video from YouTube

Do You Need to File Taxes?

Here’s what you need to know about filing taxes in 2024:

Income Limits for Students

Filing as a Dependent

Your parents can claim you as a dependent if you’re under 24 and a full-time student. This changes your tax situation:

• You MUST file taxes if you earn more than $14,600
• You MUST file if your unearned income tops $1,300
• Your standard deduction is capped at either $1,300 OR earned income + $400 (whichever is higher)

When You MUST File

File your taxes if you:

• Had ANY tax withheld from paychecks
• Paid estimated taxes
• Worked more than one job
• Made money from tips
• Received a 1099 form
• Made over $400 from self-employment

Money in Your Pocket

Even if you’re not required to file, you might want to. Here’s why:

"This is a great introduction to adulthood." – Holly Reid, Certified Public Accountant

Remember: The IRS won’t send your refund automatically – you need to file to get it.

Bottom line: If your employer withheld ANY taxes from your paycheck, file a return. You might get money back, even if you earned less than the filing threshold.

Documents You Need

Here’s what you need to file your 2024 taxes as a student:

W-2 Forms from Jobs

Got a job in 2023? Your employer must send your W-2 by January 31st if you made $600+. Here’s what the key boxes mean:

1098-T Tuition Statement

Your school sends this by January 31st. It shows:

1098-E Student Loan Form

Pay over $600 in loan interest? Your loan company will show:

• How much interest you paid
• Fees when you got the loan
• Interest added to your balance

Scholarship Papers

Keep these records:

• Letters saying you got the award
• Rules about the money
• How you spent it
• Info about grants

Other Income Forms

Watch for these:

• 1099-NEC: Side jobs paying $600+
• 1099-K: Money from PayPal, etc.
• 1099-INT: Money from bank interest
• 1099-DIV: Money from investments
• Bank statements
• Payment records from extra work

Remember: Keep these papers for 3 years after filing or 2 years after paying – whichever comes later.

Student Tax Status Basics

Let’s break down how your student status impacts your taxes and potential tax breaks.

Dependent vs Independent Status

Here’s what the IRS looks at:

When Parents Can Claim You

The IRS says your parents can claim you if:

• You’re under 19 (or under 24 as a full-time student)
• You lived with them over 6 months (yes, your dorm counts)
• They covered more than half your expenses
• You’re not filing jointly with a spouse
• You’re a U.S. citizen, resident alien, or live in Canada/Mexico

Tax Benefits: Who Gets What

Tax Planning With Parents

1. Look at the Numbers

Parents often save more by claiming you – they might get $2,500 back just from the AOTC.

2. Share Your Info

Your parents need:

• Form 1098-T from school
• Info about scholarships
• What you made at work
• What you spent on living costs

3. Track Everything

Keep records of:

• Who pays each expense
• Your school costs
• What you earn
• What you spend on housing

"Parents claiming you as a dependent usually leads to bigger tax savings than if you file independently." – Accolade Financial

Remember: For 2024, if you want to be claimed as a dependent relative, you can’t make more than $5,050 yearly.

Tax Breaks for Students

American Opportunity Tax Credit

The AOTC is the biggest tax break for college expenses. Here’s what you get back:

To qualify, you need to:

• Be in your first 4 years of college
• Take at least half-time classes
• Make less than $80,000 (single) or $160,000 (married)

The best part? Up to $1,000 comes back as a refund, even if you don’t owe taxes.

Lifetime Learning Credit

The LLC gives you money back for ANY college courses:

Student Loan Interest Savings

In 2024, you can reduce your taxable income by up to $2,500 for student loan interest.

To get this break:

• Look for Form 1098-E from your loan servicer
• Put the interest on Schedule 1 of Form 1040
• No itemizing needed

"The strategy of including certain scholarships or grants in gross income can maximize education credits", states IRS Publication 970, Tax Benefits for Education.

Here’s the catch: You can’t use both AOTC and LLC for the same student in one tax year. Pick the one that puts more money in your pocket.

Want help choosing? Young Finances has a free calculator to show which credit saves you more based on your situation.

Taxes on Scholarships

Here’s what you need to know about paying taxes on your scholarship money:

What Gets Taxed?

Some scholarship money is tax-free, but other parts count as income. Here’s the breakdown:

When to Put It On Your Taxes

You’ll need to report scholarship money if:

• You get more money than your qualified expenses
• You spend it on non-qualified stuff
• You have to work for the money

Let’s make this super clear:

Say you get $10,000 in scholarships. You spend $8,000 on tuition and $700 on required books. That leaves $1,300 you’ll need to report as income on your taxes.

Papers You’ll Need

Different Situations, Different Rules

"Scholarship money that’s more than your school costs counts as taxable income." – Bold.org

What to Do in 2024:

1. Keep track of ALL scholarship money
2. Save ALL your school receipts
3. Check your 1098-T form:
   • Box 1 shows what you paid
   • Box 5 shows your scholarships
4. Put any extra money on Form 1040 under "Wages"

Need help with the math? Young Finances has a free calculator that does the work for you.

How to File Your Taxes

Filing taxes doesn’t need to be complicated. Here’s what you need to know:

Pick Your Filing Method

Good news: You can file your taxes for FREE. Here are your best options for 2024:

Tax Forms You Need

Here’s your tax form checklist:

• Form 1040: Your main tax form
• W-2s: One from each job
• 1098-T: Shows what you paid for school
• 1098-E: Shows student loan interest
• Form 8863: For education tax credits

Tax Breaks to Claim

Don’t miss out on these tax savings:

State Tax Rules

Here’s what to know about state taxes:

• IRS partners offer free state filing
• FreeTaxUSA: $15 per state return
• H&R Block: One state return free
• Moved states? You might need multiple returns

Due Dates

Mark these dates on your calendar:

"If wages are less than $13,850, the student should still consider filing to receive refunds from federal and state withholding taxes." – Michael Trank, CPA and personal financial specialist at Wertz and Company

Quick Tips:

• File early = faster refund
• Check your numbers TWICE
• Save copies of EVERYTHING
• Use direct deposit (it’s faster)

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Special Tax Rules

International Student Taxes

Here’s what you need to know about filing taxes as an international student:

The rules are pretty straightforward:

• You MUST file Form 8843 (yes, even if you made $0)
• Want tax treaty benefits? Get Form W8-BEN
• F-1 visa holders: You don’t pay FICA taxes on your income
• Got OPT/CPT income? It goes on your tax return

Work-Study Tax Rules

Let’s break down work-study taxes:

Here’s what you need to do:

• Get that W-4 filled out when you start working
• Put your earnings on Form 1040’s wages line
• Watch those hours – stay under your award limit
• Don’t lose your W-2s (you’ll need them for taxes)

Multi-State Filing

Working or living in multiple states? Here’s the deal:

Let’s make this super clear:

If you make $40,000 in Minnesota and $60,000 in Wisconsin, you’ll pay 40% of Minnesota’s tax bill and 60% of Wisconsin’s tax bill. Simple math!

Part-Time vs. Full-Time Rules

Quick tips for state taxes:

• Tell your employer when you move states
• Look up state tax reciprocity deals
• Keep a log of days in each state
• Track your education costs based on enrollment status

Common Tax Mistakes

Here’s what students get wrong with taxes (and how to fix it):

Missing School Credits

Students leave thousands of dollars on the table by missing these credits:

Wrong Dependent Status

This one’s a BIG problem. Here’s why:

Scholarship Money Mistakes

Students mess up scholarship reporting in 4 main ways:

• Don’t report taxable scholarship parts
• Skip Form 1098-T Box 5 amounts
• Forget about teaching/research money
• Miss reporting grants for non-school costs

State Tax Mix-Ups

Here’s what goes wrong with state taxes:

Here’s what you NEED: Make a tax folder with:

• Every W-2
• School’s 1098-T
• Loan 1098-E
• State tax forms
• Scholarship letters

The IRS checks EVERYTHING against their records. Get it wrong? Expect delays or an audit.

Free Tax Help

Here’s how students can file taxes for $0 in 2024:

IRS Free Filing

The IRS offers two ways to file for free:

Head to IRS.gov to access these tools. Want a bonus? Partners like TaxAct and TaxSlayer throw in free state returns.

School Tax Help

Your college might team up with VITA (Volunteer Income Tax Assistance). Here’s what you’ll get:

Online Tax Tools

Check out these $0 filing options for 2024:

When to Get Pro Help

Time to call a tax pro? Yes, if you have:

• Multiple state returns
• International student status
• Taxable scholarships over $10,000
• Self-employment income
• Complex investments

Need a VITA site? Call 800-906-9887 or use the VITA Locator Tool on IRS.gov. Pro tip: Book an appointment – they fill up fast.

Keeping Tax Records

Here’s what you need to know about storing your tax documents:

You’ve got two ways to store your records:

"When it is feasible, scan documents, store and back them up." – Valrie Chambers, CPA and Associate Professor of Taxation and Accounting at Stetson University

Different situations need different storage times:

Here’s how to set up your filing system:

1. Create these folders:

• Income Documents
• Education Expenses
• Student Loan Papers
• Scholarship Info
• Tax Return Copies

2. Label each document with:

• Tax year
• Document type
• Date received

3. Store in two places:

• Cloud storage (like Google Drive)
• External hard drive

"The tax return is ultimately the responsibility of the taxpayer and not the preparer." – Nell Curtis, Accounting Instructor at Milwaukee Area Technical College

Bottom line: Once you’re past the storage timeline, shred paper documents. For digital files, use encryption and strong passwords.

Next Year’s Taxes

Here’s what you need to know about managing your taxes in 2024:

Money Management Steps

Payment Schedule

Making tax payments? Here’s when they’re due:

Paper Trail

Start these folders for 2024:

Important Dates

2024 Tax Numbers to Know:

• Each qualifying child: $2,000
• School costs: Save receipts
• Student loan forms: Keep 1098-E
• HSA caps: $4,150 (single), $8,300 (family)

Summary

Here’s what you need to know about filing your 2024 taxes as a student:

Tax Credits You Can Get:

Forms You Need:

Here’s something you NEED to know:

"College students need to be very careful that they understand whether or not their parents are eligible to claim them as a dependent." – Tom O’Saben, director of tax content and government relations at the American Assn. of Tax Professionals.

Where to Get Free Help:

Keep These Documents:

Here’s a pro tip: File your return even if you earned less than the required amount. Why? You might get back money that was withheld from your paychecks.

FAQs

What is a 1098-T form for college students?

The 1098-T is your tax form from colleges and universities that shows how much you paid for school and what financial aid you got. You’ll get it by January 31st each year.

Here’s what the main boxes tell you:

You’ll need this form to get money back on your taxes through education credits. But here’s the thing: not everyone gets one.

You won’t get a 1098-T if you:

• Take non-credit classes
• Are a nonresident alien student
• Got full scholarship coverage
• Take courses without academic credit

"When filing your federal income tax return, ensure you have your Form 1098-T on hand, as it can help you calculate education credits like the American opportunity tax credit and the lifetime learning credit." – IRS Documentation, 2024

Can’t find your form? Here’s what to do:

• Look in your school’s online portal
• Call the financial office
• Update your address
• Ask for a new copy

Keep your 1098-T with your tax stuff for at least 3 years. Your school MUST send it by January 31, 2025, for the 2024 tax year.

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