Alexandria Galtney
Managing Editor
It’s that time of year again, tax season, and the Internal Revenue Service (IRS) is now accepting and processing 2016 Federal Income Tax returns.
Jackson State University students like Dwayne Joseph, are using professional tax services to make sure they get the maximum amount they are owed.
“I am using Jackson Hewitt and I don’t have any concerns about filing because I know that they will take care of my tax needs,” said Joseph, a senior mass communication major from Memphis, Tenn.
Other students are trusting that their parents will make sure their taxes are filed properly.
“I’m filing with the same people my parents use in Texas. I don’t have any concerns because I really don’t have to do anything,” said Halima Marion, a junior criminal justice major from Highland Falls, N.Y.
The Jackson State Voluntary Income Tax Assistance (VITA) program annually offers the JSU free income tax assistance. The program is supported by United Way and provides free quality services from trained student volunteers.
Students participate in 24 hours of tax law training and income tax preparation. According to www.irs.gov, the VITA program offers free tax help to people who generally make $53,000 or less, persons with disabilities, and the elderly and limited English-speaking taxpayers, who need assistance in preparing their own tax returns.
If this is your first time filing taxes, it can be stressful and unfamiliar. These tips from efile.com can help you get started by offering easy to understand tips to successfully completing your first tax return:
• If you have had money withheld from your paycheck, make sure to file a tax return even if you make too little money to do so. This will enable you to receive a refund of the money withheld from your paycheck. Learn more about paycheck tax withholding and why you may want to adjust your tax withholding.
• If you are not getting any withholdings for either taxes or Social Security from your paycheck, it is likely that you are registered as a private contractor or a self-employed worker, and will have to pay taxes yourself. That includes the self-employment tax, so make sure to set aside the appropriate amount of money for paying your taxes once tax season comes. However, if you are a newspaper distributor and under 18, you are generally exempt from the self-employment tax.
• Make sure that your paycheck tax withholdings are correct. Use our free tax withholding calculator for help!
• Don’t wait until the last minute to file your tax return. Since this might be one of your first times filing taxes, if not the first, make sure you have enough time to acquaint yourself with the process and your particular tax situation.
• Either you or your parents can deduct up to $4,000 of education expenses from their taxes. That means that the income on which you pay taxes can get reduced by up to $4,000. If you pay for your education, then you can claim the education deduction. However, if your parents pay for your education, then they can deduct.
• The definition of state residency can vary from state to state, and you will have to pay state taxes to each state that you are a resident of during the Tax Year. If you live in one state but attend college in another, make sure to check the residency requirements.
• Remember that work-study programs are taxable, even if you just get a tuition break instead of a paycheck. Therefore, make sure you have the money you might owe to the IRS at the end of the year. Use our free tax calculator for an estimate!
• If you have student loans, you can deduct up to $2,500 of interest on your student loans that you use to pay for school. Learn more about deducting student loan interest.
• Student loans are not taxable because they are not considered income. However, forgiven student debt is taxable.
• If you have a job that pays in tips, make sure to include that into your income since that is considered taxable income. Any other odd jobs that are paid by in cash are also considered taxable income.
• Unlike scholarships that go toward paying tuition, scholarships that go toward paying room and board are not tax-exempt, so make sure to count that as your income. Learn more about scholarship income and taxes.
• ROTC subsistence allowances for those who are in training are tax-exempt. Active duty pay, however, is taxable income. Things like pay received during advanced camp during the summer would fall under the category of active duty pay.
• If you received any income on your investments, including interest earned from a savings account, you must report that as income.
If you are a graduate student, there might be some student tax benefits for you just like there are for undergraduate students.
Taxes are a complicated topic, but the process does not have to be difficult. Hopefully these tips will help you conquer tax season and also get the money you deserve.
