The information in this article is up to date for tax year 2024 (returns filed in 2025).
If you’re still a student, you may not have filed taxes before. If this is you, don’t panic. Tax season can be intimidating, but we’re here to walk you through it.
Below we break down what you need to know to file taxes as a student and give you pro tax tips for students that you can use to get the biggest refund you qualify for.
Do Students Need to File Taxes?
The first thing you need to determine is whether you are required to file income taxes at all. The answer to this is: it depends.
Your tax liability is based on your income. However, even if you don’t have to file a tax return, you may want to anyway if you’re eligible for a refund.
You may get money back when you file taxes as a student if
You qualify for a refundable tax credit
Your employer withheld more taxes than you owe
It’s important to understand the specifics of filing taxes as a college student, including income thresholds, required documents, and possible tax credits.
Who needs to file taxes
You will need to file income taxes as a student (single, dependent) for 2024 if
Your unearned income was more than $1,300.
Your earned income was more than $14,600.
Your gross income was more than the larger of:
$1,300, or
Your earned income (up to $14,150) plus $450.
Earned income: Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants.
Gross income: Gross income is the total of your unearned and earned income.
If your parents or guardians do not claim you as a dependent on their tax returns, you will still need to file income taxes as a student (single) if your gross income was $14,600 in 2024.
If you are a married student under age 65 filing jointly, you will need to file a return if your gross income was more than $29,200. If you are filing separately, you each need to have earned at least $5 in 2024.
Are you a dependent?
Generally, parents can claim you as a dependent until you are 19 or, if you are a full-time student, until you are 24 years old.
There are multiple tax credits and deductions available to students for education-related expenses (see below). However, if your parents claim you as a dependent, you may not be eligible to claim those tax breaks for yourself. (Your parents may be able to though!)
If you’re paying for your own schooling, talk to your parents before you file to determine your dependency status and make a plan for how you want to file.
Tax credits for students
There are two tax credits specifically for students:
American Opportunity Tax Credit: This is a partially refundable tax credit worth up to $2,500 for students (or parents) who paid for tuition, books and other related expenses. You can only claim this credit during the first four years of college. If the credit reduces your tax bill to zero, you can receive 40% of the remaining credit refunded to you (up to $1,000). To claim this credit, you will need to file tax form 1098-T.
Lifetime Learning Credit: This credit is worth up to $2,000 for students who paid for tuition and other related expenses at a qualified institution. You are not required to be pursuing a degree to claim the credit. There is no limit to the number of years you can claim this credit.
Education tax credits, such as the American Opportunity Tax Credit and the Lifetime Learning Credit, provide significant tax benefits for college students. Filing taxes is essential to access these education credits and deductions.
Keep in mind, you cannot claim these tax credits if your parents list you as their dependent. You also cannot claim both credits in the same year—so choose the credit that will get you the best tax refund.
Not sure which education tax credit to choose? ezTaxReturn can help! We take the guesswork out of taxes to help you claim the best options for your tax situation.
Scholarships, grants, and student tax deductions
Tax credits aren’t the only way to get a tax break as a student.
Scholarships and federal grants are generally tax-free if they are put towards qualified education expenses. This means they won’t count as taxable income on your tax return–lowering your potential tax liability.
Additionally, if you have student loans, you can deduct your interest payments on your return for up to $2,500. (Just make sure you aren’t claimed as a dependent, or you won’t be able to take advantage of this deduction on your own return).
>>Learn more about how financial aid affects your taxes.
What tax forms do students need?
There are a few tax forms you may need when you file taxes as a student:
Tax Form 1040, U.S. Individual Income Tax Return: This is the standard tax return form most taxpayers use to file taxes. If you made student loan payments or wish to claim any education credits, you’ll also need to attach forms Schedule 1 and Schedule 3 when you file.
Form 8863, Education Credits: Use this form to calculate and claim your education credits.
Form 1098-E, Student Loan Interest Statement: If you paid interest on student loans, your loan servicer will complete this form and send it to you to include with your tax return when you file.
Form 1098-T, Tuition Statement: This form reports your tuition payments to the IRS. Your school fills it out and sends it to you (or your parents) to include with your tax return when you file.
It’s also important to choose the correct tax filing status, as it impacts your standard deductions, tax rates, and eligibility for credits.
ezTaxReturn will walk you through all the steps to file taxes as a student and make sure you include all the appropriate tax forms when you file. Simple federal returns are free to file. See if you qualify.
Is Form 1098-T important?
Form 1098-T is a critical piece of information for filing taxes as a student. This form reports the amount of tuition and required fees paid to attend school, as well as any scholarships or grants received. When you file taxes, this form is essential for claiming education credits and deductions, such as the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). If the IRS asks for proof of your education expenses, you may need to provide additional documentation. Therefore, keeping Form 1098-T handy is crucial for maximizing your tax benefits and ensuring a smooth tax filing process.
How to report scholarships and grants
Scholarships and grants that cover your tuition and fees are generally tax-free and do not count as part of your income. However, if you used any portion of your scholarship or grant funds for non-qualified expenses like room and board, travel, or other personal expenses, you must include those amounts as part of your taxable income. Your school will provide you with a Form 1098-T, which shows the total amount of scholarships and grants you received. Additionally, if you received any taxable scholarships or grants, you will get a Form 1099-MISC. You need to report these amounts on your tax return using Form 1040. Properly reporting these funds ensures you comply with tax laws and avoid any potential issues with the IRS.
Tax Implications of Student Loans
As a college student, you may have received student loans to help pay for your education. While the financial aid can be a huge help, it also comes with certain tax implications that you need to be aware of.
How student loans affect your taxes
Student loans themselves are not considered taxable income, so you don’t need to worry about paying taxes on the loan amount. However, the interest you pay on your student loans can be deductible, which can lower your taxable income. You can deduct up to $2,500 of the interest you paid on your student loans in 2024, provided your modified adjusted gross income (MAGI) is less than $85,000 if you’re single, or $170,000 if you’re married and filing jointly. Your lender will send you a Form 1098-E, which shows the amount of interest you paid over the year. You can claim this deduction on your tax return using Form 1040, which can help reduce your overall tax liability.
Ready to file your student taxes? Make it easy with ezTaxReturn. It’s fast, simple, and designed to get you the biggest possible refund, guaranteed.
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
