Tips to Help Maximize Your College Student Tax Return

College is a rite of passage for many youth and young adults. It’s the first time they’ll probably live on their own and work a part- or full-time job. With these new adult activities comes some responsibilities like paying taxes. Filing a tax return doesn’t have to be stressful, and in the end, it could actually get students a little extra money to go toward food, rent, books, or other college expenses.

While some parents may have required their child to work as a minor, say at the local grocery store or neighborhood pool, they may not have earned the minimum required to pay taxes. Now, as working people and students 18 years or older, they must pay taxes as an adult. This can be a scary process and, sometimes, costly. That’s why we’ve put together these tips to help college students save on their tax returns.

Tips for Maximizing Your College Student Tax Return

Determine Your Dependency Status

Some college students are still their parents’ dependents; thus, their parents can claim them on their returns. This doesn’t mean a student should not file taxes—it does mean the student must indicate they can be claimed by someone else on their return.

The IRS explains that for parents to claim a child as their dependent, the child must meet either the qualifying child test or the qualifying relative test. To meet the qualifying child test, the child must be younger than you and either less than 19 years old or be a student younger than 24 years old as of the end of the calendar year.

So if you’re over 18 and a dependent, do you have to file taxes? The answer is yes if your unearned income from things like taxable interest, capital gain distributions, unemployment compensation, and Social Security benefits exceeded $1,150 in 2022. You’d also be required to file taxes regardless of whether or not you can be claimed as someone’s dependent if you earned more than $12,950.

For more information on how to determine your dependency status, go here.

Don’t Pay to File

One of the most effective ways to save money when filing a tax return as a college student is to not pay an accountant or tax service to help file your return. Students will likely have worked for one employer from which they’d receive one W-2. This is a recipe for a simple return that students or their parents can typically file online in just minutes using TurboTax or another service that offers the online tool for free.

Beware, the services would like to earn your money or part of your return. Through the process of filing, you will get asked if you’d like assistance or an upgrade to help ensure the accuracy of your filing. Unless you actually need help, just decline those prompts and proceed to submit federal and state taxes using the free tool. To file both federal and state taxes online, check out TuboTax’s free tool here.

Get Credit for Being a Student

There are a couple more ways to maximize the amount of a college student’s tax return, and these are directly related to being a college student. First, get credit for your status if you’re a student. The IRS offers the AOTC or American Opportunity Tax Credit, which is a credit for qualified education expenses paid for by an eligible student for the first four years of higher education. This credit allows individual students to get an annual credit of up to $2,500. And, if the credit brings the amount of tax they owe to zero, students can get 40% of any remaining amount of the credit refunded to them, up to $1,000. Go here to find out if you’re eligible to file for the AOTC.

Finally, students can use the LLC or Lifetime Learning Credit to claim up to $2,000 each year for expenses associated with college or vocational school. These fees include tuition, books, and learning equipment that are required to successfully take a course. These items must be purchased from the educational institution, and proof of purchase may be required.

To learn more about how to get tax credits for expenses associated with higher education, go here.

It’s important to consider any and all filing options, deductions, and credits when it comes to filing taxes as—or for—a college student. While we suggest using a free tool to save money and maximize a student’s return, if you have concerns about the accuracy of the return, it’s okay to ask an expert. To file a return plus get professional tax advice as needed, head over to Top10.com for a curated, reliable list of the top ten online tax service providers available to you.