How to file taxes as a student

In this video Eileen Brown from H&R Block answers tax questions for college students.

You should always file a tax return so you have a record of your income in case you need it in the future, even if your parents are claiming you as a dependent on their tax return.

There is a difference between a credit and a deduction. A deduction lowers your income so that you are taxed on a lower taxable income; a credit lowers taxes directly. Some credits that a student can take are the Hope Credit, which assists students in their freshman and sophomore years. There is the Lifetime Learning Credit, and the New American Education Tax Credit, which extends the Hope Credit to four years.

In addition to W-2 forms, students should save any forms related to income, including documents that come through the mail. Also be sure to save any documents related to fees incurred during the year.