Are you stressed about the upcoming headache of tax season? Learning how to file your own taxes can be overwhelming and confusing, but these simple tips can help you understand the filing process and complete your taxes with ease.
Use the 1040-EZ form
Most students will be able to take advantage of filing a 1040EZ form, which is for filers which do not have any dependents and make less than $100,000 a year in taxable income. The form is significantly shorter than the full-length 1040 form, and is useful for students who do not have many income tax credits. If you are married, you may also use the form to file jointly if your combined taxable income is still less than $100,000 a year. For more info on the 1040EZ form, consult the IRS's instruction pamphlet.
See if you qualify for Free Filing Services
Both the state of Michigan and the federal government offer free online filing services. The IRS offers a variety of free filing services for those making less than $66,000 a year and free fillable forms for those with higher income. Check out these IRS resources to learn more and see what you qualify for. The State of Michigan similarly offers some free tax services depending on your income, which can be found on this Michigan government website.
File your 1098-T Tax Form
While you’re enrolled as a student, the university will send you a 1098-T form each year. It can be found in your Wolverine Access under Campus Finances. This form will show you the amounts paid and billed for educational expenses, and it will allow you to file for education benefits that may help you reduce your taxes. Check out this H&R Block Article for more 1098-T information.
Get the most out of your Itemized Deductions
Your work-related and educational expenses may qualify as deductions. A deduction reduces the amount of taxable income you are responsible for, therefore lowering your federal or state tax liabilities. If you made a major purchase this year that you use while employed or seeking employment, you may be able to deduct a percentage of this purchase from your taxable income. Learn more about what you can deduct from these IRS tax topics.
Other Resources
Still confused? Don’t be afraid to reach out to a parent, friend, or tax consultant with questions regarding the tax process. If you’re looking to learn more, the IRS has a wealth of Tax Information for Students. The Michigan Law School website has a tax FAQ and the International Center has several tax assistance resources, including a Michigan Tax Assistance Workshop on March 28th, 2018 for international students.
Stay ahead of the stress, file early, and GO BLUE!
Contributed by Tyler Swink, Neighborhood Ambassador-Old Fourth Ward