If I remember correctly, my economics teacher in high school said that if I indicate I am a student, I will get all of the federal income tax I paid that year back. Is this true? Or am I remembering incorrectly?
2006-12-27 15:40:36 · 5 answers · asked by .Ashley. 2 in Business & Finance ➔ Taxes ➔ United States
You are remembering incorrectly. Your taxes do not change because of your position in life, they change because of your income. You basically can just get more exemptions OR deductions (you can't take both) which will lower your taxes. And if you indicate you are a student, you have to have proof. Your school will send you a form to send to the IRS. If you are just planning on saying you are a student to get a full refund, that would be tax fraud and as you have no documentation, you would be caught. You also can't claim student exemptions or deductions if your tuition was paid by scholarships or grants. And you have to have spent a certain amount in tuition to take the deduction. There are very strict rules about it.
2006-12-27 16:19:44 · answer #1 · answered by gumby 7 · 1⤊ 1⤋
No, either your econ teacher told you wrong or you're remembering incorrectly. You pay taxes based on your income. Being a student doesn't change how much tax you pay on a particular level of income.
If you are a student at a qualifying school, you can get a credit for some of your school expenses.
2006-12-28 00:34:16 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
It depends. Your tax liability is figured based on your adjusted gross income minus exemptions and deductions. Most students have a very low tax liability, hence they receive all their tax money back. But simply claiming that you are a student does not guarantee all your money being refunded to you. You do get additional tax breaks for being a student though, so it will help there. Find a CPA who can help you out; many of them will be willing to help you for less since you are a student. Hope this helps.
2006-12-27 23:46:58 · answer #3 · answered by Celo 2 · 0⤊ 0⤋
If your income is below some minimum amount, you will get a full refund, whether you are a student or not.
If your income is above that minimum, you will have some tax liability, which may or may not be more than what was withheld.
2006-12-27 23:44:25 · answer #4 · answered by fcas80 7 · 1⤊ 0⤋
i wish that were true...
2006-12-28 05:18:23 · answer #5 · answered by Meg 5 · 0⤊ 0⤋