Are you about to attend any college in the state of Arizona? If that’s the case, maybe you should consider contacting a team of Scottsdale tax attorneys. Handling taxes may not be the easiest thing in the world, especially if you’ve never done it before. But we all start somewhere, and this is your chance to learn how to do things right. Doing it successfully the first time will ease things for the future.
Before you start college in Arizona, consider the following tips regarding taxes:
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File Taxes If You Got a Paycheck
You may have no idea if you should file taxes or not. Well, just keep in mind that in case you got a paycheck during the previous year, you should file your taxes. Now, if a student made no more than $10,400 the previous year, is unmarried, and would file as an independent, filing is not necessary. However, it’s always best to do so in case they paid more on their taxes. This would give them a nice refund.
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Have All the Documents Ready
When you file your taxes, you should ensure all of your documents are prepared. You will need your Social Security Number, an ID issued by the government or a driver’s license, a W-2 earnings statement from every employer you had the last year, and any state or federal tax returns you filed the previous year.
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Be Aware of the Deadline
There is a deadline for filing your taxes. Sure, you may be excited for your new life as a student in Arizona, so excited that you may forget about everything else. However, forgetting about your taxes might end badly for you. The IRS is known to be strict regarding this matter. If you don’t file on time, you will deal with penalty costs. Since you’re a student, you want to save as much money as possible, so paying more because of penalties is not welcome.
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Know What Is Taxable
Income is taxable, but this doesn’t involve only your salary. Tip income is taxable as well, for instance, and this is something you should bear in mind. So, you should report about $20 in cash tips to the employer. Moreover, remember that all of the annual tips should be reported on your tax return.
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Get Familiar with the Tax Forms
Another very important thing that contributes to successfully filing taxes is knowing the tax forms. If you work for an employer, for instance, a W-2 form will be given to you. Meanwhile, independent contractors will get a 1099 form from every company.
If you took out a student loan, then you must also file a 1098-E Form that is basically a way to show the amount of interest you paid on the loan throughout the year.
The Bottom Line
If you are going to college in Arizona and you intend to work at the same time, it is essential to know how to deal with your taxes. Hopefully, these tips will be of use.
