By Kelly Pifer and Charles Picciotto
CORAL GABLES – Tax season is a daunting time that brings confusion and dread to many, especially college students, trying to figure it all out.
In interviews with CommunityWire.Miami, three local tax preparers talked about the common mistakes college students make when completing their annual tax return.
1. Assuming you are not required to file a tax return.
The most common mistake is when a student who is still a dependent—living with their parents, underage and working—receives a W-2 or a 1099 and decides to file their tax return without telling their parents, said Mary Finkley, president of E-Z Tax Preparation in South Miami Dade. A lot of times, they listen to friends who got a refund, so they go ahead and file on their own. But then, when their parents go to file and try to claim them as a dependent, the return gets rejected because the student already used their Social Security number.
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“Some don’t think or know that they have to file,” said Jon Drage, a Coral Gables-based accountant.
He said college students can review the IRS website to determine if they must file a return.
Single people who earned more than $14,600 in gross income in 2024 are required to file a return, according to the IRS.
2. Not including education-related expenses as a possible tax deduction or tax credit.
Nick Severdija, an accountant with CPA Miami, said education-related tax expenses — part of the 1098-T form —are key for college students and their families.
“Most overlook that they can provide a 1098-T,” said Severdija. “Or they fill it out incorrectly.”
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College students can’t claim their 1098-T—the form for education credits—until they’re 25, Finkley said. If they’re dependent on their parents, and their parents are paying at least half their support, the education credit belongs to the parents.
3. Using an unlicensed accountant
Researching tax return assistance firms is extremely important as some do not hire people with the right credentials. “They aren’t even licensed or CPA’s,” Drage said.
For the majority of college students, there are minimal incomes to report, making it a simple process. It is more beneficial to rely on advice from family and friends, trusted online help such as TurboTax, and if they are complicated enough, a registered CPA. Going to an unlicensed company for help is the worst thing to do, Drage said.
4. Accounting for a scholarship
Incorrectly filling out scholarship information is another common error. Not all scholarships are taxable. You can check here, but if it is taxable, it has to be added to the “wages, salaries and tips” line.
5. International students’ alternate forms
International students on temporary visas have different forms to fill out but are not always aware. If an international student has income subject to tax (wages, tips, scholarships, etc) that exceed tuition, required fees and dividends, then they must fill out Form 1040NR.
Taxes can seem overwhelming, but reading the instructions and taking it step by step makes it simpler, said Severdija.
“Keep track of where all your income comes from and report honestly,” said Severdija, noting it’s especially crucial college students completing their first tax returns.
