Can I Claim School Taxes Without Working?
The Internal Revenue Service allows students to offset the high cost of college education by claiming a tax credit for a portion of their tuition. Tax credits allow students to pay less tax overall. They are available to all students, regardless of whether the student is working outside of school.
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Scholarships
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If you receive a scholarship, in some cases you not only can file your taxes but are required to do so. If you receive a scholarship purely for tuition, you don't have to pay taxes on it. However, if your scholarship covers room and board, the portion of your scholarship that exceeds your tuition requirement is considered income. You must report this income on your taxes even if you are not working.
Dependents
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Many full-time students are listed as dependents on their parents' tax return. If a student earns less than $3,800, not counting scholarships, the student's parent may claim him as a dependent. The parent gets a tax break and is responsible for filing all taxes on the student's behalf. Students can still file their own tax returns if their parents choose not to claim them as dependents.
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Education Credits
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Education credits are based on how much a student pays for tuition and enrollment. A student may claim this credit if he pays these expenses, even if he doesn't have income of his own. However, students cannot claim the credit if they are listed as dependents on someone else's tax return. Students in their first four years of college may claim the American Opportunity Credit on their first $5,000 of tuition. Other students may claim the Lifetime Learning Credit. Students must reduce their expenses by any scholarships or grants before claiming the credit.
Tax Refund
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Students may file taxes for the sole purpose of getting a refund. Educational credits are partially refundable. At the time of publication, students can receive 40 percent of their American Opportunity credit back if it reduces their tax liability below zero. However, some students under the age of 24 are not eligible to get a refund on their educational credits. If a student is under the age of 24, he can't get the credit unless neither of his parents were alive, he earned more than half his own support or he filed a joint tax return with his spouse.
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