Many college students worry about their finances as they move up the college ladder and into the work force. However, with tax returns coming up, some students are offered the chance to claim cash that they might not have known they have.
“My best advice for students would be to check their 1098 tuition statements. There are a lot of education credits that are being missed because people aren’t told about them, that they can actually get tuition credit, if their parents claim it or if they claim it themselves, they can get it,” said Patty Chandler, office manager and tax specialist at H&R Block.
Many students wonder what taxes are and how they are important. According to the MacBook New Oxford, a tax as any “compulsory contribution to state revenue, levied by the government on workers’ income and business profits.” What does this tell us about taxes, however? While some students might be aware that they have to pay taxes, others do not know that they can receive money in tax refunds.
“Taxes are something that everyone has to file that have taxable income,” said Chandler.
“You’re supposed pay taxes out as they’re earned. In other words, this is just a recap of all the taxes that you’ve earned during the year to see if you owe anymore.”
Chandler said that it’s imperative to file taxes.
“It’s important, because you’re required to file, and a lot of people have withholding that they’re due back at the end of the year, so it’s important that you get back if you have overpaid your taxes. That’s where the refund basically comes from,” Chandler said.
In order to file taxes, one must have a valid picture ID, job income statements and a social security card. Taxes are filed between Jan. 1 and April 15. A six-month extension can also be filed if need be; however, that only gives a person an extension to file taxes and doesn’t allow for an extension on payments.
“Most of the penalties are based on how much you owe. It’s usually a percentage and that changes every quarter,” Chandler said.
Chandler also mentions several free options that are available to students for filing taxes. One of the options available is to go online and file. However, students and parents are both encouraged to go to a local tax specialist as well.
“On our website they list several places where you can go. We prefer that you go to H&R Block online or come here. If someone else is claiming you, and you’re a student, it’s free,” Chandler said.
Some of the mistakes or misconceptions that students have often occur when they file taxes and claim themselves. This basically means that they are financially independent and don’t require help from either their parents or scholarships. This makes the parents’ own returns as rejected when they claim. This can be fixed by an amendment.
“We do recommend that if that happens, we amend the student’s return, which takes the exemption of there so that the parents can then claim them,” Chandler said.
Other mistakes usually involve smaller mistakes such as putting in the wrong Social Security number, birth dates or any other pieces of vital information.
“We do a second look on their returns and we have found a lot of mistakes and have corrected them for people. We found a lot of people who missed a lot last year,” said Chandler.
Chandler also recommends that students avoid getting information from unreliable sources when filing taxes and that they should visit a professional for advice.
“Always check. Print off [your taxes], bring them in to your local tax office and let us look and see if there’s something that can be done,” Chandler said.
For more information on taxes, contact Patty Chandler, H&R Block office manger and tax specialist at 731-587-2602 or patty.chandler@tax.hrblock.com.
