If you have recently graduated from college, congratulations. Your world will now open up with many different opportunities for you. One of the things that you now have to worry about is tax time. Of course, it becomes a little more difficult and not as easy as it was while you were in school, but don’t panic just yet. Below, we will go over some helpful tax tips and forms that you may run into and need on your journey.
Since you have graduated and you need to move, get ready to take a deduction for that. Post grad students who moved home or moved into another residence can claim their expenses. One of the best things about this deduction is that you can still claim the standard deduction without having to itemize your taxes. Of course, there are some requirements for this deduction and you cannot just simply claim it. Some of these requirements include:
- You need to have worked full-time for 39 weeks after your move
- You moved at least 50 miles
- You can deduct packing materials, truck rental, gas mileage, and more
Student Loan Interest
One of the first forms you will run into is the student loan interest form. If you paid interest on your loans while in school, you are eligible to claim some of it as a deduction on your taxes. Of course, there are qualifications that must be met including that you must have paid $600 in interest. Your income level must be less than $75,000 and you can claim up to a maximum amount of $2,500.
If you are looking to claim the graduate student loan interest deduction, then you must be in school for at least half time when you paid the amount. If you do plan to claim this deduction, you will need to request a 1098-E form from your university or institution. This form will be used to file your taxes and input the correct information.
If it is time for you to file your own taxes, then you may be unsure of what forms to file. When it comes to basic taxes, you are able to file the 1040EZ form. This form can only be filed though when you plan to take the standard deduction, you are younger than 65, you do not plan to claim any dependents, and you earned less than $100,000 per year.
This is another form that you need to keep your eye out for. If you cannot file a 1040EZ, you will usually need to file a 1040A. This form allows you to add any dependents you may have and it also allows you to deduct student loan interest as well. If you did attend school, you can use this form if you paid interest while attending school.
One thing to keep in mind about this form is that if you do plan to itemize, you cannot use this form and must use another.
If you worked for yourself or had some side jobs that paid you cash throughout the year while you were wrapping up college, then you will need to fill out a Schedule SE if you were self-employed and a 1099-MISC if you worked for someone else and received cash from them.
It is important to make sure that you have all of these forms in hand and ready to be filled out when you file your taxes. It does help to work with a professional tax agent to help you file your taxes once you have graduated from college as it can be confusing and frustrating the first time around.
One thing to keep in mind when it comes to your taxes is that you need to keep track of all money you paid out to your student loans and all money you received as income throughout the year. It is your responsibility to make sure that you claim the right things and track all of your income.