The fifth season: tax season
By Annie Beecham, Campus Life writer
April 10, 2007 | 9:53 p.m.
The arrival of spring means more than Easter, warm weather and sunbathers littering every inch of the lawn. It’s also tax season, and many students don’t know the first thing about this pesky bit of business.
Laymen’s terms
Tax season is really quite simple. In fact, most students need not worry about it at all; this is one thing that your parents still have to do for you. Being a full time student allows for many perks, one of which is being delineated a dependent of his or her parents until the age of 24. A dependent is a child who relies on their parents for financial aid or support. Claiming their child as a dependent allows parents to receive exemptions, reducing the amount of their income that is taxed. All children are considered dependents of their parents until the age of 19, but children only receive that title after age 18 if they are full-time students, not married and still depending on their parents for at least 50% of their financial support. Therefore, the majority of students enrolled at Ohio University are considered dependents and should have their taxes filed on their parents’ tax claims.
What to look for and where to go
Maryann Hartwick, a tax advisor at the H&R Block on 86 North Court St, said that college students would want to file their taxes if the federal government and state are withholding any money from their paycheck. Money is withheld from paychecks to go toward federal and state taxes and benefit plans like social security. These withholdings will show up on a paycheck. However, that money isn’t necessarily gone forever.
“You could get it all back,” Hartwick said about the money withheld from one’s paycheck. The financial situation of your parents makes no difference in how much money you will get back in your tax refund; the amount the individual makes does.
According to Bankrate.com, dependents who earn more then $4,850 a year must file their own taxes and not be claimed by their parents. Dependents must also file their taxes if they receive more then $800 in unearned income per year, which is income that comes from investments. Therefore, a student who does not work may still have to file his or her taxes if he or she is receiving unearned income. If a student makes less then the $4,850 mark, his or her parents should handle the claim.
Sophomore finance major Rachel Beakas uses her father’s assistance in filing her taxes. “I get all of my information together, give it to my dad, and he sends it to our accountant,” Beakas said.
Students who are not dependents
Full time students who are 25 or older must file their taxes on their own, if they make enough money.
“They want to file earned income credit,” Hartwick said about students who have breached the 25-year age limit. “The best place to go is the Work Station in The Plains because they won’t charge you.”
The Work Station is located at 70 N. Plains Road. H&R also welcomes students to give tax advising free of charge, but the business will charge for filing returns.
Filing taxes may sound daunting, but the thought is really not that scary when you know where to get help and that you can potentially leave the hard work to your parents. The most important thing: file on time if you want to receive a little spring present in the form of a refund check.
For more help with taxes, visit the official IRS Web site. The Web site also includes downloadable forms for all tax purposes.