Tuition, aid complicate filing taxes

Kayla Webley
2004-04-12
The Daily

The clock is ticking for students who have yet to file taxes. But between now and midnight on Thursday, there are resources for students confused over deductions and credits, withholdings and earnings.

Before filing, students need to have two documents on hand, according to Joanne Bedier, former supervisor of Student Fiscal Services, who now assists during tax season.

"If they are a student, either regular or through extension, they need to have their educational tax report -- 1098-T," she said. "If they have wages they need to have their W-2."

Students should have received any W-2 forms from employers and can obtain 1098-T information from the MyUW page under "Student Personal Services."

Using these forms help students to determine their tax options. According to Bedier, most students have one of two options when filing based on how they paid for school.

Students who receive more money through grants and scholarships than they pay for tuition have to list the money as income. It must be added to their wages, said Bedier.

The other option is an educational credit for students that have spent their own money on tuition fees.

"[Students] may file for a tax credit for any money that they paid themselves for tuition," Bedier said. "To file a tax credit they use form 8863."

According to the IRS, in addition to tuition, there are several items students may include for credit on their taxes if grants and scholarships do not cover the expenses. If required of all students in a course, books, supplies, equipment and fees are eligible for tax credit. Not included in this are expenses for room and board, travel, teaching and research services.

Students in need of help preparing taxes, but not wanting to pay to hire an accountant, can attend a free tax preparation day for the community at the Urban League Building.

This service is sponsored by the Urban League of Metropolitan Seattle from 10 a.m. to 2:30 p.m. at its office at 105 14th Ave.

While the program is designed for families to take advantage of the "earned income tax credit," forms that students file, including the 1040, 1040EZ and 8863 will also be prepared.

Another resource is the large number of Web sites on tax preparation. The IRS compiles a list of companies as part of its "free-file alliance" for taxpayers who qualify. These companies have all been approved by the IRS for offering free federal online tax preparation and e-filing. Most require that filers have an adjusted gross income of around $30,000 or less.