Taxes made easy: The student’s guide to filing

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Key points

• Tax season can be extremely stressful, especially for students, but getting an early start and learning about the process can help you complete your taxes confidently.
• Many resources are available to help you sort through the different forms, situations, and credits that you might encounter while filing your taxes.
• While not for everyone, completing your own tax return saves money and is easier than you might think.

Note: This article provides general information and should not be considered as professional tax advice. Please consult a tax professional or refer to the IRS website for personalized guidance.

In a letter to a friend, Benjamin Franklin famously wrote, “In this world nothing can be said to be certain, except death and taxes.” While a lot has changed in the last 200 years, the reality of taxes certainly has not. For many, filing taxes can be stressful and tedious. “The whole process is confusing. It’s not clear how any of the amounts are calculated on the forms provided by the university/workplace, and it’s not clear what to put on tax return forms to get any money back,” says Zunaira K., a graduate student at the University of California, Davis. 

Feeling frustrated or confused while doing your taxes is extremely normal, especially if you’re filing for the first time. With a little planning and some helpful resources, you can file your taxes confidently and hopefully save some money in the process.

When should I start working on my taxes?

Robert Persichitte, an affiliate professor in the Department of Accounting at Metropolitan State University of Denver in Colorado, says that starting the process early can save students a lot of stress. “I would recommend, at the beginning of tax season, to make a list of what [tax forms] you’re expecting to get,” says Persichitte. “Most documents are going to be sent to you by January 31.” Getting the process started early can help you resolve issues with missing documents or documents that are online, rather than mailed, with plenty of time before the April 15 deadline. If you do not receive the forms you are expecting, contact the employer or institution. 

If you make any income through self-employment (think: that dog-walking side gig) or receive most of your income from freelance positions that don’t withhold taxes, you might be required to pay your taxes quarterly. Quarterly tax deadlines are in January, April, June, and September, and anyone who is self-employed and expects to owe more than $1,000 in taxes should pay quarterly taxes on their earned income. (See the “Get help or find out more” section at the end of this article for more information about filing quarterly.)

What tax documents should I receive?

A 2019 article published by the Harvard Business Review estimates that the gig economy, where people provide on-demand work rather than working a set schedule, makes up 30 to 40 percent of the US workforce. This means that many students should be looking for more than just a W-2 form in the mail during tax season. “If you got more than $600 from someone, you should expect a tax document,” says Persichitte. While the documents you receive will depend on your specific situation, here are some common forms that you might encounter.

Additionally, you might want to keep some documentation of your own. If you’re self-employed or work for a gig app, keeping track of business expenses (e.g., car mileage) can help you maximize your potential refund. You can also keep documentation of your school expenses to use tax credits like the American Opportunity tax credit, which applies to students in their first four years of postsecondary education, or the Lifetime Learning credit, which can help students save on expenses like tuition and class materials from eligible institutions.

What resources are available to help me complete my taxes?

Still feeling overwhelmed? Luckily, there are many resources available to help students successfully file their taxes. Companies like H&R Block and TurboTax have dedicated guides to help students with their taxes, and the IRS also offers a wealth of information to help students as they are preparing their tax returns. Additionally, many students qualify to file their taxes for free through the IRS Free File program, which allows anyone who earns less than $73,000 annually to file their taxes for free.

What happens if I make a mistake?

While it’s normal to be nervous about making a mistake on your taxes, the likelihood of a college student being assessed a fine or getting audited is actually fairly low. “There’s a myth I want to dispel that the IRS is a shadowy organization and that if you [mess] up your taxes, then you will go to jail,” says Persichitte. In many cases, even if you make a mistake on your taxes, the IRS will simply withhold your refund and try to fix the problem. Persichitte also says that many tax preparers offer a free second look to check that tax returns were completed correctly, as long as you contact them early in tax season.

Do I need to hire someone to complete my tax returns for me?

In a recent CampusWell survey, 52 percent of respondents planned to use tax preparation software like TurboTax to complete their return, while another 19 percent planned to hire a tax preparer or accountant. As this data indicates, many people choose to forego the stress of completing their own tax returns by paying someone else to take care of it. Making this choice depends on a variety of factors, including how complicated your taxes are, how much disposable income you have available, and your own tolerance for completing tax paperwork. However, as this guide has explained, there are a variety of resources available to help you complete your taxes without having to spend additional money on software or a tax preparer. Many free online systems have become very easy to use, prompting you with basic questions to help you navigate the process.

“Even if you’re nervous, try it. Try the do-it-yourself route, and if you think that it’s not right or you think there’s a problem, then take it to a tax preparer and have them take a look or use one of the software options,” says Persichitte.