Taxes for College Students: What You Actually Need to Know
Keep More of Your Money Without the Headache
Hey there, college student (or parent of a college student! If you’re juggling classes, a part-time job, maybe a side hustle—and yes, living off ramen and energy drinks—I get it. You’ve got a lot going on (but please, for the love, put down the energy drink).
But let’s talk taxes.
Not fun. Not flashy.
But worth your time.
Because filing the right way could actually put real money back in your pocket. And you definitely want that.
Do College Students Really Have to File Taxes?
Short version: Yes, probably.
A lot of students think taxes are just for people with full-time jobs. But if you made money this year, you're in the game.
Let’s keep it real:
Made over $15,000? You’ve got to file. No debate.
Made less, but saw taxes taken from your paycheck? File anyway. You might get that money back.
Made $400+ from DoorDash, freelancing, tutoring, Etsy, etc.? That’s self-employment. And yep, the IRS taxes that too.
Got scholarships? Used them only for tuition and books? You’re good.
Used them for housing or meal plans? That part gets taxed. (Yep, it's annoying.)
Bottom line: If money came in, you might owe—or get a refund. Either way, don’t skip filing.
Can Your Parents Still Claim You?
This part confuses a lot of students. Here's how to check:
Are you under 24?
In school full-time?
Do your parents pay more than half your expenses?
If yes, your parents can likely claim you as a dependent. But that doesn’t mean you’re off the hook.
You still need to file your own return if:
You worked a job
Had taxes withheld
Got a taxable scholarship
Important: When you file, mark that someone else (your parents) is claiming you. That avoids duplicate claims—and IRS drama you don’t want.
Don’t Miss These Tax Breaks
Here’s the good stuff. There are tax credits that could save you or your parents real money.
The American Opportunity Tax Credit (AOTC)
Worth up to $2,500/year
For undergrad students (first four years)
Partially refundable—up to $1,000, even if you owe nothing
If your parents still claim you, they get this one, don’t try to grab this, you’ll be sure for an audit check.
The Lifetime Learning Credit (LLC)
Worth up to $2,000/year
Works for grad students, part-time students, continuing education
Not refundable, but still reduces what you owe
Only one credit per student per year. Choose the one that works best—or let your parents decide based on what gives them the bigger break.
Got a Side Hustle? Here’s What You Need to Know
Let’s say you’re making moves—maybe selling art on Etsy, doing rideshare, or tutoring online. That’s amazing, but...
If you made over $400, the IRS sees you as self-employed.
You’ll owe self-employment tax (15.3%)—that covers Social Security and Medicare, PLUS income tax.
The cool part? You can write off business expenses! That includes supplies, software, mileage, even part of your phone bill if it’s used for work.
Pro tip: Use a budgeting app or spreadsheet to track income and expenses. It’ll save you so much pain in April.
Quick & Dirty Filing Tips for a Smooth Tax Season
Let’s make this easy:
Get your forms together early. W-2s from jobs, 1098-T for tuition, 1099s from freelance stuff.
File as soon as you can. You’ll beat the rush and get your refund faster.
Use free help! Look into programs like VITA—they’re IRS-approved and totally free. BUT If we do your parents’ return, we do dependent returns starting at $75 (more if you have that freelance job)!
Double check your info—messed-up bank details or a typo in your SSN can delay your refund.
Need Some Help?
Look, taxes can feel overwhelming—especially if it's your first time. If you’d rather not go it alone, Misty Newsome CPA LLC has your back. We've helped tons of students (and their families) sort through the tax maze without the stress.
Book a quick digital coffee here to get started. We keep things simple, save you cash, and help you file right the first time.
