Yusra3
VIP Contributor
College students navigating taxes for the first time may overlook key information. Stay in the know with these 7 essential tax tips:
1. Scholarships and grants used for tuition, fees, books and supplies are not taxable income. Those used for room, board, travel or other expenses may be taxable.
2. Internship income, freelance work, and side jobs require filing taxes. You must pay income taxes on earnings, even as a student.
3. Tips reported on a W-2 are taxable. Keep detailed tip logs if your employer does not track gratuities.
4. Interest paid on student loans is deductible up to $2,500 per year provided your income falls under certain limits.
5. University work-study program earnings are fully taxable. Retain pay stubs to calculate taxes owed.
6. Report all income earned from sources inside and outside the U.S. Foreign students face U.S. tax obligations on worldwide income.
7. Keep excellent records like tuition statements, loan interest paperwork, bank forms, tax documents and receipts. Stay organized year-round.
Consult IRS resources for students and connect with your university’s tax specialists. File income taxes properly each year to avoid interest and penalties.
1. Scholarships and grants used for tuition, fees, books and supplies are not taxable income. Those used for room, board, travel or other expenses may be taxable.
2. Internship income, freelance work, and side jobs require filing taxes. You must pay income taxes on earnings, even as a student.
3. Tips reported on a W-2 are taxable. Keep detailed tip logs if your employer does not track gratuities.
4. Interest paid on student loans is deductible up to $2,500 per year provided your income falls under certain limits.
5. University work-study program earnings are fully taxable. Retain pay stubs to calculate taxes owed.
6. Report all income earned from sources inside and outside the U.S. Foreign students face U.S. tax obligations on worldwide income.
7. Keep excellent records like tuition statements, loan interest paperwork, bank forms, tax documents and receipts. Stay organized year-round.
Consult IRS resources for students and connect with your university’s tax specialists. File income taxes properly each year to avoid interest and penalties.
