Tax exeption for college students?
Question:
So here is my question--since I am a full-time student, do I even have to file my taxes? And if so, am I exempt from anything?
If anyone could find any paperwork or anything I will even pay you!!
Answer:
If your work from self-employment nets you $400 or more after expenses, you are required to file a tax return and pay approximately 15% of your net income in Social Security and Medicare taxes.
You will also pay income taxes.
Your student status will allow you to take the tuition deduction, Hope Credit, or Lifetime Learning Credit, assuming you are not a dependent on another return.
It's always a good way to file, just to keep IRS from coming after you 10 yrs from now.
IRS Taxpayer Assistance Division
1-800-829-1040
Look for the nearest office under U.S. Government in your local phone book. These folks will not only do the paperwork,but file your taxes for you for FREE!
There are no exemptions available for students.
You may qualify for tuition credits or tuition deductions though.
Due to the self-employment, you may end up owing as tuition credits can not be used to offset self-employment tax.
Being a full-time student does NOT exempt you from the requirements to file a tax return and pay any taxes due - they are calculated the same way as for someone who is not a student. If you are a self-emplyed contractor and make at least $400 a year, you have to file.
The only break you get for being a student is possilble education credits for a portion of your tuition and fees. If you are a dependent of your parents, then they get the credit though, not you.
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