Do students pay tax?

Hi!  Thank you for writing! Some students do need to file a tax return. The requirement whether a person needs to file or not hinges more on their income level than their status as a student. U.S. tax laws require you to file a federal income tax return if your income is above a certain level; which varies depending on your filing status, age and the type of income you receive. The levels usually change each tax year.  For 2016, a taxpayer who is under age 65 and is filing as Single would need to file a return if earnings were over $10,300 (and if Married Filing Jointly over $20,600). Or if you are claimed as a dependent on your parents return and have unearned income over $1050 as Single, you’ll need to file a return.  Use this interactive tool to figure out your specific case on whether you need to file or not: https://www.irs.gov/uac/do-i-need-to-file-a-tax-return. There are other special circumstance too that could necessitate your doing a return.

You also might WANT to file a return to get tax money back that you paid or get tax credits. Possible reasons include:

1.      Getting Back Federal Income Tax Withheld 

2.      Getting a “Making Work Pay Credit, Earned Income Tax Credit, Additional Child Tax Credit, American Opportunity Credit,  First-Time Homebuyer Credit or Health Coverage Tax Credit 

So if you have earned the specified amount of income or more, you’d need to file a return even if you are a full time student. This Forbes article is helpful: https://www.forbes.com/sites/kellyphillipserb/2016/01/21/do-you-need-to-file-a-tax-return-in-2016/#784886d95d91

Best wishes to you in your studies!