I know there's a tax thread around here somewhere, but I couldn't think of a search criteria that didn't give me tons of results, so I decided to use the indefatigable tool known as "mayfly".
Really quick, I'm an unmarried dependent student. I get a subsidized loan (Stafford Loan) of $5500 a year, and also a 100% scholarship/grant thinger (Bright Futures. It's automatic in Florida if you get a certain SAT score). I didn't work last year until November, when I started a part time, minimum wage job. They gave me a W-2 thing (I think thats what it was) which I don't have in front of me, but my income was definitely not over $1000, probably closer to $500.
Do I need to file? And if I do, is there anything special I should be aware of, or should I just plow ahead into the IRS website and figure it out myself?
Posted by pooka (Member # 5003) on :
You can fill out a free file program through an approved vendor from IRS.gov (which you'll have to register for) and it will tell you what the outcome is before you have to submit a final deal. Was federal tax withheld from your pay? If not, the look into "minimum filing requirements" on the IRS.gov site, you might not need to file. Though I believe you have to file to get the stimulus prebate - if you qualify for that (which I also don't know.)
Posted by Dr Strangelove (Member # 8331) on :
I just found the part on the IRS website which does seem to indicate that I have to file, because the Stafford Loan counts as income, and I have to file if I have $5350 in income. I'm thinking I'll have had about $5500 in income. Oh well. I guess filing won't be all bad. At least it'll give me something to do while I wait for my finals to roll around.
Posted by rivka (Member # 4859) on :
Loans are NOT income. Grants can be, depending.
Posted by Dr Strangelove (Member # 8331) on :
Ooook then. I guess I misread. :-)
Posted by rivka (Member # 4859) on :
Sometimes you can get a tax credit for interest paid on a Stafford. And if all or part of your loan is forgiven, you currently have to pay taxes on that. (Although there are several groups trying to change that.)
But there is no tax on the initial disbursements.
Posted by Dr Strangelove (Member # 8331) on :
I just saw something else which says:
quote: I received an academic scholarship that is designated to be used for tuition and books. Is this taxable?
Qualified scholarships and fellowships are treated as tax-free amounts if all of the following conditions are met:
- You are a candidate for a degree at an educational institution, - Amounts you receive as a scholarship or fellowship are used for tuition and fees required for enrollment or attendance at the educational institution, or for books, supplies, and equipment required for courses of instruction, and - The amounts received are not a payment for your services.
So ... I'm guessing that means my scholarship is tax-free, since it meets those criteria. I think I'm going to file anyways though, just so that I can say I have. I feel like a baby not filing taxes.
Posted by rivka (Member # 4859) on :
Most states' grants are tuition/fees only, or tuition/fees/books, so non-taxable. From what you're saying, sounds like that's true for you.
*laugh* That's a weird reason to file taxes. Hope you get back something.
Posted by Farmgirl (Member # 5567) on :
I'm bumping this "obviously not a mayfly" thread because I'm stuck on a tax form and beating my head.
Trying to do my daughter's pretty simple taxes. Should be just 1040EZ, basically.
But she has this 1098-T form from the college that is throwing the whole thing off and the software now has her owing like $2000 (she only made $5000 in wages last year). I can't figure out what I'm doing wrong.
If some of you tax-savvy people have dealt with this 1098-T form before and can help me, please contact! Posted by KetchupPrinceConsort (Member # 8047) on :
If you had federal taxes withheld from your wages, then you should get all of that back as well as the stimulus credit.
Posted by rivka (Member # 4859) on :
Also, if she is your dependent, YOU should be taking the education credit, not her. In fact, unless she pays taxes, she can't. Although the new stimulus package may change that -- I haven't seen guidelines released on that yet.
Posted by Farmgirl (Member # 5567) on :
Thanks to both of you -
KPC - I just saw your e-mail and sent you back full details. Thanks so much.
![[Frown]](frown.gif)