January 28, 2022 marked my one year anniversary of paying off my student loans . Reflecting back on choosing to pay off my student loans leaves me with several take a ways that I want to share with you! In September 2020 I decided to become debt free by utilizing the debt snowball method to pay off all my debt. Before this I had struggled to save and really understand basic financial principles. As a first-generation college student, I received a scholarship to attend undergrad for free, but the scholarship did not cover summers. During the summers I took out student loans to cover costs without paying interest rates or how much I was taking out. By the end of undergrad I had amassed a little under $17K. Fast forward to graduate school I received another scholarship that covered my education. At the time I was a teacher in a new very expensive city and I had missed the cutoff to have my paycheck last me throughout the summer. So, I decided to take out a loan for two summers to ...
(This
a photo of a sign that says "taxes" on a pile of money used as a thumbnail for my YouTube video
on MORE Tax Tips for Students!)
About a month ago, I recorded a video where I discussed the 1098-T. That video is now over 1.8 views and is continuing to grow by the day. Thank you all for your support! Well that got me to thinking what other tips can I give to students who are filing taxes this year? In case you did not know, the IRS opened on February 12 and many people have already received their tax refunds. Check out these quick and easy tips below if you are a student who plans to file their taxes soon.
1. Know your dependent status. Are your parent’s claiming you this year? If you’re unsure, ask them. This will help you to determine what tax credits best fit you.
2. Scholarships are non-taxable income! Apply for as many as possible. You could even claim a tax credit of up to $2,500 if you are not a dependent.
3. Pay interest on your student loans. Pay the interest on your student loans even if you’re still enrolled. This will help more of your payment go to the balance once it is time to start making payments. You may even qualify for a tax deduction once you receive your interest statement in the mail!
4. Be on the lookout for important tax documents. What address did you put on file? Your school dorm or your home address? Be sure to use the address that you will be located at around tax time.
5. Do not pay to file your taxes! Use the IRS free tax website or VITA, the volunteer income tax assistance program.
Check out the video below for more information.
SUBSCRIBE: MORE Tax Tips for Students!
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