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Don’t be one of those people who hire an accountant when their taxes could be done for free. Unfortunately, more than a third of taxpayers making less than $50,000 annually do the former. 

Tax Day is traditionally some time in mid-April, but it’s been pushed back one month, so you have plenty of time to file. Here’s a guide to filing your taxes ahead of the May 17 deadline and, most importantly, how to do it on your own. 

Let’s first figure out if you need to file a tax return. Students: if you’re single, under the age of 65 and have a gross income of at least $12,400, you must file a tax return. That number rises to $24,800 if you are under age 65 and married.

To understand this, you need to first understand what gross income is. Gross income is defined as all of the income you received in the form of money, goods, property and services that aren’t exempt from tax. This does not include scholarships or grants used to pay for tuition and fees.

If you are still unsure if you are legally required to file taxes, take this quick quiz from the Internal Revenue Service. If you are an international student, you are required to file a tax return regardless of your income amount. 

But, even if you aren’t required to file your tax return, it’s still a good idea to consider filing!

Oftentimes, taxes will automatically be withheld from your paychecks (that includes on-campus jobs). Check with your employer to see whether this is the case for you. By filing a tax return, you will be able to receive that withheld money. Signing up for direct deposit will allow you to receive your refund faster than through a check in the mail. The IRS issues nine out of 10 refunds within 21 days of acceptance if you use direct deposit, according to TurboTax. Typically, tax preparation software will guide you through this process. 

Additionally, the American Opportunity Tax Credit allows you to get up to $2,500 back if you are paying for the first four years of higher education, and it also applies to the student’s parent or guardian if the student is still a dependent. 

If you qualify, you or your parents should submit the information on Form 1098-T. This is what you use to support your educational credit claim by reporting the eligible educational expenses you’ve incurred for that year. Eligible educational expenses include tuition and fees required to enroll at the institution, as well as course materials such as textbooks, equipment, and supplies that are explicitly required of all students in the course.

Another benefit to filing your tax return is that you are able to establish an earning record. Why establish an earning record? Your earning record is important because it is used to determine how much social security you will receive when you retire. You are working hard for your money, so you want it to count!

Jim Borland, acting deputy commissioner for communications at the U.S. Social Security Administration, warned that just one year of inaccurate reporting of earnings could cause your future benefit payments to be $100 less per month than is accurate, which could leave you without tens of thousands of dollars in entitled benefits.

All of this may sound scary and overwhelming, but fear not.

The Office of Financial Literacy is offering 30-minute tax sessions for students, faculty and staff to file their taxes free of charge through TaxSlayer, an electronic filing software. Participants must pre-register for the tax sessions, which started March 1 and will run through April 15th. The sessions are offered Mondays, Wednesdays and Thursdays, with one from 11:30 a.m. to noon and another from 2 p.m. to 2:30 p.m. You can register here.

 For any questions, please reach out to the Office of Financial Literacy (finlit@syr.edu) or Kelsey Woodford (kgwoodfo@syr.edu).

Andrea Lan is a junior finance major. Her column appears biweekly. She can be reached at alan01@g.syr.edu. She can be followed on Twitter at @AndreasLandBlog.

Published on March 17, 2021 at 8:58 pm