FinMan Tax Filing Tips for Students

Don't Get Tangled in Taxes

Yo, whassup?! So I’m back from winter break, trying to ease on into spring semester… But just when I’m mellowing out, playing these dope new PlayStation 2 videos I got for Christmas, I gotta deal with this add/drop thing, not to mention buying books and lining up my work hours at Burrito Joe’s… And hey, now th’authority (i.e., my parents) is ragging on me about doing my taxes and filing the FAFSA for next year’s financial aid!!

First off, since you’ll need your tax info in order to file your financial aid forms, get your priorities straight and fire off your taxes early (and get that sweet refund!). The good thing is old Uncle Sam has made this tax thing easy, especially for students like us who aren’t making the big bucks (yet!). Listen up and lemme share a few tax tips I learned by surfing around the very cool (no joke!) IRS web site…

FinMan's Tax Tips

- Before tackling your taxes, make sure you’ve got all your W-2 Forms from anyplace you worked in 2001, including your on-campus work-study gig at the bookstore. You know--those flimsy, easy-to-lose forms that start showing up in the mail at the end of January. Hey, if you don’t receive one of those babies by February 15, you can sick the IRS on your old boss.

- Once you have all your W-2(s), make things easy on yourself: Use the Telefile form you got in the mail and give the toll-free number a jingle to file your taxes over the phone in 5 minutes! You can even tell them to direct deposit your refund. No hassles!

More FinMan Tax Tips...

- Not the phone type? So check out e-filing: If you made less than 25 G’s last year (hey, if you made more, hire someone else to do your taxes!), you can file on the web for FREE (no software to buy or download). Check out http://www.irs.gov/elec_svs/partners.html for details..

- Now, some dudes may not have to file a federal tax return. If you’re a full-time student and your parents claim you as a dependent and you made less than $4,550 (earned income) in 2001, you don’t have to file. But even if you don’t have to, you SHOULD file a return to receive a refund of any federal taxes that were withheld from your pay.

- And don’t forget about the Hope Scholarship credit if you’re a freshman or sophomore: You (if you’re not claimed as a dependent on your parents’ taxes) or your parents (if you are claimed as a dependent) may qualify for a credit of up to $1,500. (If you’re beyond your sophomore year, you may qualify for a Lifetime Learning credit of up to $1,000.) Your school will send you Form 1098-T to use in claiming this credit.

- Paying interest on an unsubsidized loan during school? Well, you might be able to deduct up to $2,500 for that too. Beginning in 2002, the 60-month limit on the student loan interest deduction is eliminated.

- Get the details on the Hope Scholarship credit, student loan interest deduction and other tax benefits for higher education in IRS Publication 970 (http://ftp.fedworld.gov/pub/irs-pdf/p970.pdf)

And once you’re done with your taxes, filing the FAFSA won’t seem so bad!! (Hint: complete your FAFSA easily online at www.fafsa.ed.gov.) Now, back to those PlayStation 2 games…

Later,

P.S. Check out my home page for more FinMan tips!

ENTER a drawing to win a prepaid AT&T phone card with free minutes! Send a response e-mail by January 31, 2002 to finman@nelliemae.com and provide the following information: your name, school name, campus mailing address, campus telephone number, and campus e-mail address. All responses will be entered into a drawing and winners will be randomly selected.

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