A Guest Post from Ryan -
Being in college, the whole money-management and doing your own taxes thing can feel cumbersome. You may get the “final exam” feel while doing it, but the difference here is that this test involves money. However, with a bit of research and preparation from your end can make things easy and help you make the most out of this “test”. So how do you go about making this tax exam easier? Let’s find out:
Don’t make much money? It still makes sense to file even if you don’t have to. Not having a lot money shouldn’t stop you from filing because if you have had cash withheld from past paychecks then you will see a refund coming your way. This might seem like a simple tip but it will work in your favor in the long run.
#2: Begin Early
Don’t worry if you haven’t got your W-2s yet. You’ll find the needed tax information (how much you earned and how much was withheld) with your final pay stub. If you feel like you need a helping hand then you may want to check with your college’s account department. There you should find students offering to help with taxes for free to gain practice in “real life” returns. Don’t wait too long for seeking on-campus help because the closer April 15th gets, the more difficult it is to find help.
#3: Take Your Time
It’s a good idea to give yourself a weekend to fill out your forms. Will it take that long? No, of course not. But the ample amount of time you have on weekend will give you the space to take breaks when and if needed and double or triple check everything before you mail your return. If you want to take a safer route, do your returns on a leisurely weekend, then seek outside help/ask any questions the following week and then finally send it the next weekend after checking your numbers one last time.
#4: Practice on Paper
If you choose to file taxes online, it is better to go through the paper forms, fill them out and get rid of any bugs before taking the final step. Your aim here is to ensure that the whole filing process goes smooth without any obvious mistakes that can be avoided with some practice. Remember, clarity is the key to getting things right the first time.
#5: Know About Your Family’s Financial Picture
Talking to your parents about money and finances is not easy for any college student. But then it’s important that you learn about their financial situation in order to plan who should be claiming as their dependent and using your education deduction or credit. Keep in mind that if your parents are taking care of fifty percent of your expenses, then you can be listed as a dependent on their taxes.
Every college student knows the importance of money, and so should you. But what’s more important than that is understanding how to manage your finances and get them in order so that you can study with peace of mind.