College is often the time we begin taking on more responsibilities and dipping our toes into adulthood. You might have recently started your first job or maybe you’re learning how to stick to a budget or manage your time and schedule on your own for the first time. And, college might also be when you’re filing your taxes for the first time.
In this article, we’ll be answering questions about how students file taxes and providing tips and tricks to help you maximize your refund.
Do students need to file a tax return?
If you’re new to filing taxes, this may come as a surprise, but not everyone is required to file a tax return. There are a few factors that come into play here, and we’ll break them down in the following sections.
Are you a dependent?
A dependent is a qualifying child or family member that relies on someone else for financial support. As a full-time student, if your parents provide more than half of your financial support, they can claim you as a dependent until you turn 24 years old, so be sure to have that conversation and find out if they’re claiming you before you file.
If you’re a single dependent under 65 years old, you’re required to file a return if you meet any of the following criteria:
- Your unearned income was more than $1,350
- Your earned income was more than $15,750
- Your gross income was more than the larger of:
- $1,350, or
- Your earned income (up to $15,300) plus $450
If you earned income during the tax year that doesn’t meet the filing requirement, we still recommend filing a return—if you had taxes withheld, filing a return is the only way to receive your refund, plus it’s practice for when you’ll actually be required to file. If you are filing a return as a dependent, be sure to tick the box for “Dependent” to ensure your parents are still able to claim you on their return.
Refer to this table for additional information on dependent filing requirements.
How much income did you receive during the tax year?
Regardless of education status, the IRS requires you to file a tax return if your income is over a certain threshold. For example, if you’re a single filer under 65 years old, you need to file a return if your gross income was over $15,750.
To accurately determine how much you made during the tax, there’s some terminology you might need to know:
- Earned Income: Taxable income from a job or self-employment. Earned income can include wages, salaries, tips, and other taxable employee pay; net earnings from self-employment; and gross income received as a statutory employee.
- Unearned Income: Passive income from sources other than working a job. Unearned income might include dividends, interest, and capital gains.
- Gross Income: Your total income before taxes or other deductions are applied.
Here, we’re mostly focused on your gross income, or your total income before taxes. Use the IRS’s table on filing requirements to check the requirements for your tax situation.
Are you married?
Married couples can choose to file their tax returns jointly or separately, and each have their own filing requirements. If you’re filing jointly and you’re both under 65 years old, you’re required to file if your combined income was over $31,500 in tax year 2025. If you’re filing separately, regardless of age, you’ll be required to file a return if your income was more than $5.
What Tax Forms Do Students Need?
One of the first steps to filing your taxes is gathering necessary documents. Some of the most common tax forms for students include:
- Form 1040: Your individual tax return, which you’ll use to report your income for the tax year.
- W-2: Documentation from your employer detailing the income you made and taxes you paid during the tax year. If you worked more than one job in a tax year, you may have more than one W-2.
- 1098-T: Documentation from your educational institution detailing tuition and other fees you’ve paid throughout the tax year.
- 1098-E: Documentation from your student loan provider detailing interest payments you’ve made throughout the tax year. Your 1098-E will be important if you intend to deduct your student loan interest payments.
- 8863: Use this tax form to determine eligibility and claim either of the education-related tax deductions in the next section.
Tax Credits and Deductions for College Students
Students, or their parents, may be eligible for tax breaks through education-related credits and deductions that reduce your tax bill. The IRS offers two education-related tax credits—the American Opportunity Tax Credit and the Lifetime Learning Credit—as well as a student loan interest deduction. Let’s break them down.
American Opportunity Tax Credit (AOTC)
The American Opportunity Tax Credit (AOTC) aims to help offset higher education costs for students during their first four years of college. The maximum credit amount is up to $2,500 per student per tax year. And, this credit is partially refundable, meaning you may be able to get a portion of this credit as part of your tax refund.
Lifetime Learning Credit (LLC)
The Lifetime Learning Credit provides relief for tuition-related expenses and can be applied to undergraduate, graduate, and professional degree courses. The maximum credit amount is up to $2,000 per tax return. This credit is non-refundable, meaning you won’t be able to get any of it as part of a refund, but it can still help reduce your tax obligation.
Student Loan Interest Deduction
The student loan interest deduction allows students, their parents, or their spouses to deduct up to $2,500 in interest payments for tax year 2025. Be sure to locate your Form 1098-E you received from your student loan provider to accurately report your payments. Use this interactive IRS tool for help determining your eligibility for the student loan interest deduction.
Stress Less This Tax Season
Filing taxes for the first time can feel daunting, add in the numerous forms and evolving tax rules and it can get even more confusing. Taking the time to learn more about the tax process and student-specific insights can help you better prepare for when it comes time to file and ensure you’re receiving the maximum refund possible.
