Twitter
Facebook
Reddit
Digg
Tell us what you think!Send a letter to the editor about this or any other article in The Maine Campus.
Income taxes are due Friday, Apr. 15, but students who have not filed still have the ability to send their forms out on time. Students in need of help filing income tax returns can receive assistance from volunteer accounting majors in the College of Business, Public Policy and Health.
Volunteer Income Tax Assistance, a program coordinated with the Internal Revenue Service, is available at no charge to all students seeking assistance with completion of federal and state income tax forms and filing. VITA is comprised of approximately half a dozen students available to provide tax assistance services from 11:00 a.m. to 2:00 p.m. Thursdays in Room 218 of the Donald P. Corbett Business Building.
College students are also entitled to several special deductions based on their filing status and earned annual income. Many students are not aware of resources available to save money when filing, according to associate professor of accounting Dr. Steve Colburn. Colburn supervises VITA volunteers while they work on student’s income tax forms.
“A lot of students aren’t aware of deductions and credits,” he said. “Some [students] don’t know how to do their taxes, it’s a new experience. Some are leery of the process.”
The Hope Credit and Lifetime Learning Credit are two deductions that are often utilized by students, according to Colburn. The Hope Credit covers 100 percent of the first $1,000 of tuition expenses and other school expenses, plus 50 percent of the next $1,000 of tuition and other school expenses, for a total of $1,500 credit per student.
To qualify as a University of Maine student, a candidate must have freshman or sophomore standing, be enrolled in a degree-seeking program and must have no felony drug convictions.
The Lifetime Learning credit offers more than the Hope Credit, with fewer restrictions. Students can apply for 20 percent of a maximum of $10,000 in tuition and fees, for a total of a $2,000 deduction. Students are only required to take one course and do not require any specific class standing. There is no restriction on the number of times an individual can apply for the Lifetime Learning Credit.
Expenses that do not apply for a deduction include, but are not limited to, room and board, transportation expenses, insurance, textbooks, classroom supplies or extracurricular activity supplies, such as athletics, unless the activity is a conditional requirement for enrollment, according to TurboTax Educational Credits Rates and Rules.
Students who find the tax forms difficult to complete or who have questions about deductions can stop by VITA without an appointment. Colburn said many students have difficulty filing taxes due to working at a number of difficult locations.
“We also get students who work in Maine and another state,” Colburn said. “Students often approach VITA in need of assistance with filing because they are often unaware that out-of-state revenues must be reported on the Maine income tax form. On Maine forms you have to report all income, including other states.”
Most students will receive a refund on income tax returns, because they typically do not have enough earned income to pay taxes, according to Colburn.
“Most students I’ve run into are entitled to a refund,” he said.
The IRS and the Maine Revenue Services Web sites both have electronic filing resources available at no cost.
“Generally, electronic filing speeds up the process by a week or two,” Colburn said.
If students select direct deposit, it can decrease the return time an additional week or two, according to Colburn.
He said that filing on time is important to ensure that debts to the government do not accrue with steep interest penalties, and so returns can be processed quickly.
Failure to file a return or filing late can be costly. If taxes are owed, a delay in filing may result in penalty and interest charges that could increase tax bills by 25 percent or more, according to the IRS Web site. There is no penalty for failure to file a tax return if a refund is due. Waiting too long to file can cause individuals to lose a refund. In order to receive a refund, the return must be filed within three years of the due date.
