Filing taxes can be confusing for college students, with unique rules around education credits, tuition, student loans and part-time jobs. Here’s what college students need to know about filing taxes and how to make the most of some special tax benefits.
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Do College Students Need to File?
The answer depends on their income and whether they had employers withhold taxes from their paychecks.
Students who are single and earned more than the $15,750 standard deduction in tax year 2025 must file an income tax return. That $15,750 includes earned income (from a job) and unearned income (like investments).
They must also file a return if they are a dependent and their unearned income (including interest and dividends, unemployment compensation and income as a beneficiary of a retirement plan) is greater than $1,350 or their self-employment income is more than $450, says Mark Steber, senior vice president and chief tax officer for Jackson Hewitt Tax Service. For more insight, visit the IRS’s guide to tax information for students.
College students may still want to file a return even if it’s not a requirement.
“If wages are less than (the standard deduction), the student should still consider filing to receive refunds from federal and state withholding taxes,” says Michael Trank, a retired principal with Wertz and Company in Irvine, California.
In other words, if a student had their employer withhold income taxes from their paychecks, they can file a return and get a refund.
Do Your Parents Claim You as a Dependent?
Whether your parents can claim you as a dependent is based on your age, student status and who’s paying the bills.
“Generally, a parent can claim you as a dependent until age 19, but if you are a full-time student, they can claim you as a dependent until age 24,” says Brittany Benson, manager with H&R Block.
There are also other requirements, including how much financial support the person’s parents are providing. A full-time college student is generally a dependent if they’re younger than 24 and don’t provide more than half their own support, among other rules, Benson says.
Part-time students who are 19 or older might not be dependents.
“If a child is going to school part time, is over 19, and working and making more than $5,050, they are not a dependent,” Steber says.
For more information, see IRS Publication 501 Dependents, Standard Deduction and Filing Information.
Parents Might Be Eligible for the American Opportunity Tax Credit
If your parents claim you as a dependent, they may be eligible to take the American opportunity tax credit during your first four years of postsecondary education. This helps cover eligible college costs like tuition, books and supplies.
The credit can be worth up to $2,500 for tax year 2025. To qualify, the student must be enrolled at least half time and pursuing a degree or other recognized educational credential, among other requirements.
Students whose parents aren’t able to claim them as dependents but who meet other requirements may be able to take the credit themselves, Steber says.
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You or Your Parents May Be Able to Take the Lifetime Learning Credit
Students in undergraduate, graduate or professional school may be eligible for the lifetime learning credit, which is worth up to 20% of eligible expenses, with a maximum credit of $2,000 per return. If your parents claim you as a dependent, they may be able to take the credit.
To claim the full credit, the filer’s modified adjusted gross income must be $80,000 or less if single or head of household, or $160,000 or less if married filing jointly.
Filers can claim a partial credit if modified adjusted gross income is more than $80,000 but less than $90,000 if filing as single or head of household, or more than $160,000 but less than $180,000 if married filing jointly.
For more information, visit IRS Publication 970 Tax Benefits for Education.
Tax Savings for Student Workers: No Tax on Tips and Overtime
College students may benefit from the “no tax on tips” and “no tax on overtime” provisions that were included in last year’s One Big Beautiful Bill Act.
Workers in occupations that “customarily and regularly” receive tips, such as restaurant servers, can deduct up to $25,000 in tipped income on their 2025 tax return. Overtime can also be deducted — up to $12,500 for single filers and $25,000 for married couples filing jointly. However, only the overtime portion of the pay can be deducted, not the worker’s base rate.
Both deductions can be claimed on the Schedule 1-A form.
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What Tax Forms Do You Need?
U.S. citizens and residents file federal income tax returns on Form 1040, but you may need to include additional forms like Schedule C and Schedule SE if you have self-employment income.
You should receive W-2 forms from your full- or part-time employer(s) reporting your income and any taxes they withheld — or 1099s reporting income from freelance work or dividends, interest or capital gains from investment brokerage firms or banks.
You may also receive Form 1098-T showing the tuition you paid in 2025 and Form 1098-E reporting any student loan interest payments.
How to File Taxes for Free
If you’re in college, money is likely tight. You can generally file your taxes for free if you have a straightforward return.
Taxpayers with adjusted gross incomes of $89,000 or less can prepare and file their 2025 federal income taxes online for free through IRS Free File.
If you have a simple return, you may also be able to use other programs for free, such as some TurboTax and H&R Block versions.
If you want personal assistance, you may be able to get free tax help from the IRS Volunteer Income Tax Assistance program, which might be available on campus or in your community.
The program aims to provide assistance to those who make $69,000 or less per year, people with disabilities and people with limited English-speaking skills. You can look up VITA sites in your area by using the IRS locator tool. For more information, see the IRS’s page on free tax return preparation.
You can also work with an in-person or online tax preparation service, such as H&R Block or Jackson Hewitt Tax Services.
Or you might consider consulting an independent tax preparer — either in person or virtually. You can check a tax preparer’s credentials by using the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications.
Smart Tax Move for Working Students: Contribute to a Roth IRA
If you’ve earned any income from working, consider contributing to a Roth IRA.
If you’re under 50, you can contribute up to $7,000 from income you earned during tax year 2025 — whether or not you file your own return.
You have until April 15, 2026, to contribute to a Roth IRA for tax year 2025. The contribution limit increases to $7,500 for 2026.
Roth contributions aren’t tax-deductible, but the money grows tax-free and you can withdraw earnings tax-free after you reach age 59 1/2 or in other special circumstances, such as a first-time home purchase.
Roth IRAs can give students a huge head start on their financial future. “It’s never too early to start saving for retirement,” Trank says.
Roth IRA Flexibility Benefits Students
Roth IRAs can be especially attractive to young investors because of their flexibility, says Rita Assaf, vice president of retirement products at Fidelity Investments.
“The most attractive feature about Roth IRAs, especially for younger investors, is the ability to withdraw money before retirement,” she says. You can also withdraw your contributions without penalties or taxes at any time and for any reason.
Additionally, you can withdraw earnings penalty-free for qualified education expenses, certain medical expenses and up to $10,000 for a first-time home purchase.
Under the SECURE 2.0 Act of 2022, account holders can now roll over unused 529 college-savings plan funds to a Roth IRA. The 529 plan must have been open for the designated beneficiary for at least 15 years, and the Roth IRA also must be established in the name of the designated beneficiary of the 529 account, Assaf says.
The transfer amount must come from contributions made to the 529 account at least five years prior to the transfer date, she says. Rollovers from a 529 to a Roth are subject to the annual IRA contribution limit, with a lifetime limit of $35,000 per beneficiary.
“This is an attractive option for many, as it not only removes some of the barriers to saving for higher education, it allows for that education savings to now go toward a Roth IRA for the same beneficiary, giving them a head start for retirement,” Assaf says.
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2026 Guide: Tax Filing Tips for College Students originally appeared on usnews.com
Update 03/12/26: This story was published at an earlier date and has been updated with new information.
