How to File Taxes as a College Student

When you enter college, your first thought might not be about taxes. But college students have to file taxes just like everyone else—assuming they earn above a certain income threshold. Failing to  file on time could result in penalties. 

Even if you aren’t required to file, doing so could put money back in your pocket. That’s because you might get a refund or qualify for deductions and tax credits for college students, which can reduce your tax liability. 

Learn more about how to file taxes as a college student, when filing is required, and how to maximize your refund with education credits and deductions. And know this: If it ever feels overwhelming, TurboTax provides personalized tax solutions for college students.

Do college students have to file taxes?

Whether you have to file taxes depends on your gross income, dependency status, and filing status. You’re required to file if your gross income in 2024 was at least: 

• $14,600 for single filers 
• $29,200 for married filing jointly (if both spouses are under 65) 
• $30,750 for married filing jointly (if one spouse is under 65) 
• $21,900 for heads of household 

If you’re single, claimed as a dependent, and are under age 65, your filing requirements are slightly different. You must file a return if any of the following apply:

• Unearned income is over $1,300
• Earned income is over $14,600
• Gross income was more than the larger of $1,300, or earned income (up to $14,600) plus $450

Filing requirements depend on whether the income is considered “earned” or “unearned.” For example: 

• Earned income: This includes salaries, wages, tips, and other taxable income earned from a part-time or full-time job, internship, or self-employment. NIL income is also taxable. College students typically need to file taxes when their earned income exceeds the standard deduction, or minimum income threshold for their age and filing status. 
• Unearned income: This includes earnings from dividends, interest, investments, unemployment compensation, annuities, pensions, and taxable Social Security benefits. It may also include taxable scholarships and fellowship grants. If you’re a dependent, you must file if you earned at least $1,300 in unearned income (or $3,250 for dependents who are at least 65 or blind). 

You’ll also need to file taxes if you’re self-employed and earned at least $400 in 2024.

Dependency status: Can parents claim students on their taxes?

A dependent is a qualifying child or relative who relies on another taxpayer for financial support. To claim a student as a dependent, that student must: 

• Be a US citizen, national, or resident (or a national or resident of Mexico or Canada) 
• Not file a joint return (except to claim a tax refund) 
• Not be the taxpayer’s spouse 
• Not be claimed by another taxpayer (exceptions apply) 
• Not claim dependents of their own 

The IRS defines a “qualifying child” as someone who is: 

• The taxpayer’s child, stepchild, sibling, adopted child, grandchild, niece, or nephew 
• Under age 19 (or under 24 for full-time students) 
• Any age if permanently and totally disabled 
• Residing with the taxpayer for at least half the year* 
• Not filing as married jointly (exceptions apply) 

To be a qualifying relative, the dependent must: 

• Earn no more than $5,050 during the year (gross income) 
• Receive more than half their financial support from the taxpayer 
• Reside with the taxpayer all year* 

*Exceptions apply

Even if someone claims you as a dependent, you may still need to file taxes based on your income, filing status, and marital status. Filing separately could also be a smart move if you’re eligible for a tax refund or certain refundable tax credits. 

Note: Having someone else claim you as a dependent could affect your eligibility for certain tax deductions or credits.

Tax credits and deductions for college students

Tax breaks for college students can lower your tax liability or potentially get you a refund. Here are some of the big ones.

American Opportunity Tax Credit (AOTC)

The American Opportunity Tax Credit (AOTC) is available for the first four years of postsecondary education. Eligible students must: 

• Be actively pursuing a degree or recognized education credential 
• Be enrolled at least half-time for at least one academic period 
• Not have finished the first four years of higher education 
• Not have claimed the AOTC for more than four tax years 
• Not have a felony drug conviction at the end of the year 

In 2024, the maximum credit amount is $2,500 per year per eligible student. The nonrefundable portion of the credit is $1,500. If that brings your tax to $0, then you may be eligible for a refundable credit of up to $1,000 (based upon 40% of any remaining credit). 

The full amount of the credit is available to individuals whose modified adjusted gross income (MAGI) is $80,000 or less ($160,000 or less for married couples filing a joint return). 

This tax credit is phased out for households with incomes higher than these levels and is completely phased out when MAGI equals $90,000 ($180,000 if you are filing a joint return). Qualified education expenses include tuition, school fees, and course-related books, supplies, and equipment

Lifetime Learning Credit (LLC)

The Lifetime Learning Credit (LLC) is available to students enrolled in an undergraduate program, graduate program, or professional degree course. You may also be eligible if you’re enrolled in a course that helps you learn or improve job-related skills at an eligible educational institution. 

The advantage of this tax credit is that there’s no limit to the number of years it can be claimed. It’s worth up to $2,000 per tax return and may be available if your MAGI is $80,000 or less ($160,000 if you are married filing jointly). The credit is completely phased out when your MAGI reaches $90,000 or more ($180,000 if you’re filing as married filing jointly). 

Unlike the AOTC, the LLC is nonrefundable. Even if you don’t use the full credit amount, you still won’t receive the excess as a refund. You can use the LLC for qualified education expenses like tuition, school fees, course-related books, supplies, and equipment if paid to the institution as a condition of enrollment.

Student loan interest deduction

The student loan interest deduction is another tax break for college students. To qualify, you must have paid interest on qualified student loans last year. You can’t be a dependent on someone else’s tax return or married filing separately. 

You can deduct the lesser of $2,500 or the amount of interest you actually paid during the year—but the exact amount depends on your income. If your modified adjusted gross income is between $80,000 and $95,000 ($165,000 and $195,000 if filing jointly), you can claim this deduction, but at a gradually reduced rate. This deduction is phased out if your modified adjusted gross income is $95,000 or more ($195,000 if filing jointly).

What about 529 savings plans?

Qualified tuition programs (QTPs), or 529 plans, are tuition programs that have been qualified and authorized under section 529 of the Internal Revenue Code. With tax advantages and potentially other incentives, 529 plans make it easier for families to save for a child’s college education.  

A 529 plan can be used to cover tuition and other eligible education expenses—like supplies, books, materials, and other fees. These plans can also cover room and board if the plan beneficiary is enrolled at least half time in a qualified program. 

Though contributions to 529 plans are not tax deductible on federal returns, many states offer state tax deductions or credits.  The advantages include no income limit for the contributors, your investments grow tax-deferred, and tax-free withdrawals when used for qualified education expenses.

Confirm with your 529 plan administrator to ensure your expense qualifies before making the withdrawal.

Up to $10,000 of 529 plan funds can also be used to pay for tuition for private, public, or religious elementary, middle, or high schools.

Are scholarships, grants, and fellowships taxable?

Scholarships, grants, and fellowships can help make higher education more affordable. You must include  the funds in gross income if: 

• You use them for expenses like room and board, optional equipment, or travel. 
• You receive them as compensation for research, teaching, or other services. 

These funds are usually not taxable (and don’t need to be included in your gross income) when: 

• You’re enrolled in a qualifying academic program. 
• You use them for tuition and fees required for enrollment. 
• You use them for other course-related expenses, like books, supplies, and related equipment. 

You won’t need to include your scholarships, fellowship grants, or other grants if they’re required by any of the following: 

• Armed Forces Health Professions Scholarship and Financial Assistance Program 
• National Health Service Corps Scholarship Program 
• Qualifying student work-learning-service program 

If you do need to report your scholarship, grant, or fellowship, complete Form 1040 or Form 1040-SR. In TurboTax, the taxable scholarships and grants are entered in the education section of the software and will be reported on the proper schedules and forms.

Filing taxes as a dependent vs. independent student

When filing taxes, college students have access to certain tax breaks that other taxpayers don’t. But those tax benefits depend on whether you file as a dependent or independent student. 

Filing as an independent student could make you eligible for certain education deductions and credits. These can include: 

• Student loan interest deduction 
• Coverdell Education Savings Account 
• 529 plan or other qualified tuition programs 

When someone claims you as a dependent on their tax return, they may be eligible for certain education credits and deductions—like the AOTC or LLC. You, as the dependent, lose eligibility for these tax breaks.

Even if you’re claimed as a dependent, it’s often still worth filing a tax return.. You might be eligible for a refund or other tax benefits. In some cases, you may also be required to file, depending on your income, filing status, and other factors.

How to file taxes as a college student

Here’s how to file taxes as a college student: 

1. Figure out if you need to file. This is based on your income, whether it’s earned or unearned, and filing status. If you’re eligible for a refund or tax break, filing could also be a good idea. 
2. Gather the necessary forms. You’ll need certain tax documents to file, such as a W-2 (wages from work), 1098-T (tuition statement), 1099-INT (bank interest), and 1099-Q (529 distributions). Include any forms related to your scholarships, grants, or fellowships, too. Your state may also require specific forms. 
3. Choose the right tax form. You’ll generally need to complete Form 1040 (US Individual Income Tax Return) or Form 1040-SR (if you’re a senior). If you have business or self-employment income, include Schedule C with Form 1040. 
4. Decide which deduction to take. Decide whether to itemize or take the standard deduction. Whichever option gives you the greater tax benefit is usually the smarter choice.

Want to make sure you don’t miss any tax breaks? TurboTax simplifies student tax filing, guiding you every step of the way.

File student taxes with confidence

College students generally have to file taxes if they earn above a certain income threshold. But here’s the upside: Filing could unlock valuable education credits and deductions, like the AOTC or the student loan interest deduction. Depending on your situation, you may even get a refund. 

TurboTax offers a student-friendly filing experience complete with guided assistance for students filing independently or as a dependent. We’ll guide you through entering important forms—like Form 1098-T and 1099-Q. And we’ll maximize your education credits and deductions to get you the biggest possible refund. Whether you file your taxes yourself or have a TurboTax expert do it for you, we’ve got you covered.