Yep. It’s time for this kind of post. Tax time is here! Don’t roll your eyes; this could be the time that the IRS pays you for your gas – literally. Filing for taxes can be a real pain point for individuals who are working a full-time schedule and have dependents. However, as interns, we should take it seriously as well consider the many benefits of receiving a nice tax refund.
Tip #1- FILE!
Most interns will not file. They will allow their parents to claim them without exploring the potential benefits of filing their own tax return. There are many benefits and most of them are for the parents. When your parents claim you they are able to reap the benefits of having you in school. Make sure to ask questions about how they file their taxes and what kind of tax refund you could receive if you filed on your own.
Tip #2 – Deducting tuition
This incredible tax break is scheduled to be nixed after the year 2011. Meaning this is the last year interns can take a deductible of this magnitude as it stands. Currently you can deduct tuition and fees required for enrollment or attendance (if you live in Midwestern “disaster areas” you may be eligible for even more deductible items). Whether you are taking only taking one class or the maximum number of class hours allowed, you should explore the eligibility requirements because even one class could become the difference between a large or small refund.
Tip #3- Deducting interest on student loans
The student loan interest deduction is valid for up to $2500. Since student loans are prevalent in today’s society, this tax break comes as a great benefit for students as they begin to repay their college-based debts. Unfortunately for those just starting school in 2013, the rule is changing to only allow the interest to be deducted for the first 60 months of repayment.
Don’t be intimidated if you have never before filed your own taxes. There are many free resources to help you out with any questions you may have. The IRS has a variety of links (and an entire section of their website) devoted to helping students and intern-aged individuals. There is also the option of buying tax accounting software, going to a free tax day at a local accounting or financial firm, or utilizing free income tax preparation help at your college.