April 15th: National Tax Day

Everyone’s favorite day of the year… TAX DAY! April 15th is the deadline to file taxes, and it always seems to sneak up on people. For many college students, taxes can feel confusing, overwhelming, or just easy to ignore altogether. Between classes, work, internships, and a packed schedule, filing taxes probably doesn’t even cross your mind unless your parents bring it up. Whether you worked a part-time job or completed a paid internship over the summer, Tax Day affects the majority of students without them even realizing it.

The good news? You control whether it’s stressful or not. Understanding the basic concepts of income tax, W-2s and 1099s, and filing status can make Tax Day feel much more manageable. Filing taxes doesn’t have to be overwhelming. It’s something most people have to do, and it happens every year. With a little organization, you can make April 15th feel like the start of financial responsibility rather than a source of anxiety.

Why College Students Need to Pay Taxes

College students need to pay taxes because earning income comes with financial responsibilities, no matter what stage of life you’re in. The government requires that your income be reported, whether it’s from a part-time job, paid internship, or side hustle. Filing taxes also protects you. First, it ensures that you receive any refund you’re owed and helps you avoid penalties for not reporting income. Learning how to file taxes while earning a lower income in college sets you up for the future and helps you feel more confident filing once you graduate. Instead of viewing taxes as a chore or a burden, try to see them as a step toward independence.

Common Tax Mistakes

The most common tax mistake college students make is waiting until the last minute to file. This can lead to unnecessary stress, missed deadlines, or even penalties. Another common mistake is not keeping track of important documents required to file your taxes. W-2 and 1099 forms are the most common documents needed. You receive a W-2 if you are employed by a company and taxes are withheld from your paycheck each pay period. You receive a 1099 form if you are self-employed or work as an independent contractor, meaning taxes are typically not withheld from your payments.

Some students might ask why taxes are taken out of their paycheck. Taxes are withheld from each paycheck, meaning money is automatically taken out by your employer before you receive it. The money that is withheld is sent to the government to help cover the taxes you are expected to owe for the year. This ensures that you don’t have to pay a large lump sum on April 15th, since your tax payments are spread out over the year. If too much money is withheld, you may be eligible for a refund when you file, the fun part about filing! However, if too little is withheld, you may owe additional money at tax time.

Tax Tips

• File early. Don’t wait until April 14^th to start trying to file.

• Keep your documents organized. Save your W-2s and 1099s in a folder somewhere safe.

• Don’t ignore side income that you make. Money from Venmo, side hustles, and gambling may still need to be recorded to ensure no fraud is committed.

• Know if you are claimed as a dependent. Ask your parents or the head of your household to ensure that they claim you. This affects how you file.

If you are ahead of your filing and have everything organized, April 15^th won’t be a day that you dread. While taxes may seem confusing at first, understanding the basics and staying organized can make the process much more manageable. As a college student, learning this early can allow you to feel less stressed in the future and be more financially responsible.

Be Well, Auburn.