Tuition tax credits andelementary Internet programs will give college students some much needed helpthis year when filing their 2004 income taxes.
The Internal Revenue Servicereported that nine out of 10 college students receive refunds from the federalgovernment every year.
“We deserve it, and maybe evenmore,” said Shay Belk, a SU graduate student in political science fromShreveport. “It’s what the government owes us for paying all these taxes duringthe year.”
April 15, is the final day foranyone to submit taxes without incurring late penalties and charges on moneyowed to the federal government.
But what can seem like adaunting and overwhelming task for college students and their parents, can bemade simple for the Internet savvy, said Diane Luzena, tax adviser for H &R Block in Baker.
“The Internet is a very goodsource,” Luzena said. “They (college students) can electronically file on theirown using free filing programs offered by the IRS.”
According to H&R Block, whooffers a Young Adult Online Tax Program geared toward college students for acost of $29.95, e-filing has reached a record high. Out of the 61 million taxreturns filed through March 11, 70 percent of them were e-filed.
The popular Internet programTurbo Tax also offers college students an easy way to file their taxes withtheir “Rock Your Refund” tax filing service at a cost of only $5.95. AtRockYourRefund.com students can file their taxes and have their IRS refundmailed to them in about 10 days. The IRS Web site also has links to several taxfirms that offer free services.
Depending on filing status,dependant or independent, Luzena said college students and their parents couldalso qualify for education credits by filing Form 8863, which can also beobtained from the IRS Web site.
“For the first two years ofcollege students qualify for the Hope Credit and after that they can file forthe Lifetime Learning credit for their remaining two years of school,” Luzenasaid.
The amount of a tax credit withHope and Lifetime Learning is determined by the amount a person pays forqualified tuition and college related expenses, Luzena said.
The Lifetime Learning credit isnon-refundable and can award tax payers up to $2,000 per family for allundergraduate and graduate level education. The amount is figured by taking 20percent of the first $10,000 of qualified expenses paid, Luzena added.
Qualified expenses does nothowever include books, room and board, student activities, athletics,insurance, transportation, or other similar personal, living, or familyexpenses according to IRS tax credit guidelines.
“If they have children, and theyclaim themselves, they (students) qualify for Earned Income Credit,” Luzenasaid.
Earned Income Credit is anothertax credit for people who work, or worked, and did not make much money. Themaximum amount awarded is $4,300 to taxpayers who claim two or more children,$2,604 for one child, and $390 for no children.
By April 15, the IRS saystaxpayers should either file a return or request a four-month extension, givingthem until Aug 15 to file.
“Late filing penalties arecharged to tax payers, by the IRS, for whatever percentage is owed to thegovernment and not paid on time by the taxpayer,” Luzena said.
Late tax filers should rememberto put all required Social Security numbers on their returns, double-checktheir figures, make sure all forms are signed where need be and attach allrequired schedules to the front of their returns to ensure proper processing bythe IRS.
