Parents at Lake State
A Tax Time Reminder
The advent of a new year means that tax paperwork will soon be arriving. So, if you are still involved in your student’s tax return preparation, you’ll need to gather those incoming W-2s from on- or off-campus jobs. Talk about exchanging these forms now so that they don’t get lost in the jumble of your student’s busy life.
And, if your student does his own tax return, encourage him to check into campus tax resources. Some organizations offer free tax preparation assistance to students. The accounting department may offer help, too. Students who learn to do their own taxes are acquiring a lifetime skill.
Start preparing now… April 15 will arrive sooner that you think!
Publication 970 (2005), Tax Benefits for Education
The IRS offers an online guide to possible tax benefits for education. The publication:
Explains the taxability of various types of educational assistance such as scholarships, fellowships and tuition reductions.
Explains educational benefits such as the Hope credit, the lifetime learning credit and 10 others (i.e. possible deduction of tuition and fees, participation in qualified tuition program).
Goes in-depth when it comes to reminders, who is eligible and more.
Check it out at http://www.irs.gov/publications/ p970/index.html. You can also visit www.irs.gov or call 1-800-829-1040 with further questions.