Filing taxes doesn't have to be the most dreaded fiscal chore of a student's year. With the April 17 deadline for filing all tax returns quickly approaching, there are several steps that students can take to easily navigate tax paperwork:
- First, determine whether you need to file a federal income-tax return.
According to the IRS' Web site, individuals who have had federal income tax withheld from their paychecks must file a return in order to claim a tax refund. This requirement holds true regardless of the amount earned.
- The IRS' Publication 17 -- which provides guidelines for students filing tax returns -- says that students may have to file taxes under certain conditions: individuals with unearned incomes exceeding $800 and earned incomes exceeding $5,000.
- Tax software is available that guides users step-by-step through the tax-filing process.
"It would take me 10 or 15 hours to do it if I didn't use any software," said Wharton professor John Core, an avid user of the Turbo Tax program. "I would have to get somebody else to do it for me."
Wharton sophomore Austin Pena also uses Turbo Tax to file his returns. Austin did not file a return this year because he did not make enough money from his summer job, but he said he has done his own taxes -- as well as family members' taxes -- for the past two years.
Turbo Tax "asks the right questions and knows what to do with the answers," he said.
The IRS's e-File also offers fast, online tax filing.
- If face-to-face consultation is preferred, tax firms such as as H&R; Block -- which has a location at 4009 Market St. -- offers tax help to frustrated students.
- For those who'd rather stick with old-fashioned paper and pencil, the IRS' forms 1040, 1040A and 1040EZ are widely available at various public locations, including post offices.
- Joel Schneier, a tax specialist for H&R; Block, recommends that students keep one thing in mind when attempting to file their own tax returns.
"Proofread," he said. "You really have to put the numbers in the right place."
Schneier added that one of the most common tax-filing mistakes is forgetting to include other sources of income, including bank dividends and stocks.
Even if students miss the April 17 deadline, they can still file for an extension by filling out Form 4868, he said. But the extension does not grant a delay in payment of any outstanding tax liabilities owed.
"It's not really an excuse to sit on a huge debt to the IRS," he said.
The Daily Pennsylvanian is an independent, student-run newspaper. Please consider making a donation to support the coverage that shapes the University. Your generosity ensures a future of strong journalism at Penn.
DonatePlease note All comments are eligible for publication in The Daily Pennsylvanian.
