Grow Up: File Your Own Taxes
Adriene Similton
Issue date: 2/4/10 Section: News
Know Your Status
Check with your parents and see if you're being filed under
"Taxes"
their taxes. According to Bankrate.com expert Dana Dratch, "if your parents are paying more than 50 percent of your expenses, they are entitled to list you as a dependent on their taxes.
Also keep in mind that the available education tax credits will wipe out taxes that you owe, but they won't generate a refund.
If you're not making a lot of money and don't owe any taxes, these credits can't help you. And the value of a deduction (for example, the higher education expenses deduction) increases with your tax load, making it much more valuable to someone in the 35 percent bracket (your folks) than someone in the 15 percent bracket (you).
So unless you expect to owe a bundle, chances are your parents will get more out of a credit or deduction than you will."
Be Choosy
Picking the right program for filing your taxes is like buying a new car, some just won't suit you. However, make sure when choosing a source that will gain you the best return. Do some research.
There are several online Top 10 lists for E-Filing. Settling for the first one you stumble upon could cost you money. Software programs are also available from TurboTax and H&R Block.
For more advice on filing your taxes visit IRS.gov, one of your professors or one of several online providers.
Check with your parents and see if you're being filed under
"Taxes"
their taxes. According to Bankrate.com expert Dana Dratch, "if your parents are paying more than 50 percent of your expenses, they are entitled to list you as a dependent on their taxes.
Also keep in mind that the available education tax credits will wipe out taxes that you owe, but they won't generate a refund.
If you're not making a lot of money and don't owe any taxes, these credits can't help you. And the value of a deduction (for example, the higher education expenses deduction) increases with your tax load, making it much more valuable to someone in the 35 percent bracket (your folks) than someone in the 15 percent bracket (you).
So unless you expect to owe a bundle, chances are your parents will get more out of a credit or deduction than you will."
Be Choosy
Picking the right program for filing your taxes is like buying a new car, some just won't suit you. However, make sure when choosing a source that will gain you the best return. Do some research.
There are several online Top 10 lists for E-Filing. Settling for the first one you stumble upon could cost you money. Software programs are also available from TurboTax and H&R Block.
For more advice on filing your taxes visit IRS.gov, one of your professors or one of several online providers.
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