Do College Students Need to File Taxes?

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

Let’s be honest—college students already juggle classes, exams, work, and trying to have some sort of life. Adding taxes to that list can feel like a bad joke.

But here’s the reality:

If you’re a college student earning income, the IRS is interested in you—and you might be walking away from refunds and credits if you don’t file.

This doesn’t mean every student is required to file, but a lot more should file than actually do. Let’s break down when it’s required, when it’s smart even if it’s not required, and how to avoid the biggest mistakes students (and parents) make.

Step 1: Are You a Dependent or On Your Own?

Before we even talk dollars, we have to answer one key question:

Can your parents (or someone else) claim you as a dependent?

Many college students are still dependents because:

• Parents provide more than half of their support
• The student is under a certain age and enrolled full-time
• The student lives with parents part of the year (with exceptions for school)

Being a dependent doesn’t necessarily change whether you must file, but it does affect:

• Who can claim certain education credits
• Which standard deduction rules apply
• How the overall tax picture works for the family

You can be a dependent and still file your own return—you just can’t double-claim certain benefits. The key is coordination.

Step 2: How Much Did You Earn?

Now let’s talk numbers.

For most single college students with earned income (wages, tips, etc.), you generally must file a federal tax return when your income is above the standard deduction for that year (often in the ballpark of the figure you see on the meme, like ~$12K+ in some years).

But there are important twists:

Earned Income (Jobs, W-2 Work, Campus Employment)

You may need to file if:

• Your earned income is above the filing threshold for that year, or
• Taxes were withheld from your paycheck and you want a refund, even if your income was below the threshold.

Translation:

Even if you didn’t earn “that much,” you might still be owed money back. Filing is how you claim it.

Self-Employment & Side Hustles

Did you:

• Do DoorDash, Uber, Instacart, or ride-share?
• Freelance online (design, tutoring, coding, content creation)?
• Sell products or services as an independent contractor?

If you had self-employment income, different rules kick in. You generally may need to file a return if your net self-employment income is above a relatively low threshold (often around a few hundred dollars), because of self-employment tax.

That surprises a lot of students. Fair or not, the IRS treats your “side hustle” like a mini business.

Investment & Other Income

You may also need to file if you have:

• Investment income (interest, dividends, capital gains)
• Scholarship or fellowship money that’s taxable (for example, amounts used for room and board rather than qualified tuition/fees)

The bottom line: income isn’t just what hits your paycheck. There may be forms like 1099-INT, 1099-DIV, 1099-NEC, or scholarship statements involved.

Step 3: Why You Might Want to File Even If You Don’t Have To

A lot of college students fall into this category: technically not required, but filing is still in their best interest.

Here’s why:

1. You Might Be Due a Refund

If an employer withheld federal income tax from your paychecks, but your overall income was modest, you may be entitled to get some or all of that tax back. No return = no refund.

2. You May Qualify for Education Credits

There are potential education-related tax credits tied to tuition and qualified expenses. Depending on who paid and who claims you, filing a return might help you or your parents capture those benefits.

3. It Builds Financial Muscles Early

Filing taxes while you’re young:

• Teaches you how the system works
• Helps you understand pay stubs, withholdings, and refunds
• Sets you up to be ahead of the game when your income grows

Get this right as a student, and your future self—earning real money—will thank you.

Parents & Students: Coordinate, Don’t Compete

One of the biggest mistakes I see is parents and students not talking before filing.

You want to avoid:

• Both claiming the same education expenses or credits
• Confusion over whether the student is a dependent
• Conflicting information that triggers IRS notices

A simple conversation can prevent a complicated problem:

• Are parents claiming the student as a dependent?
• Who is reporting scholarship and tuition amounts?
• Are there any 1098-T (tuition) forms or other education-related documents?

This is where having a professional look at the whole family picture often leads to better overall tax savings than everyone filing on their own in isolation.

State Taxes: Don’t Forget the Second Layer

Even if your federal situation looks simple, you might also have to consider state income taxes, especially if:

• You worked in a different state than your permanent residence
• You attend college in another state and had income there
• Your state has its own lower thresholds or different rules

Some students end up needing to file more than one state return. That sounds intimidating, but with planning it’s manageable.

How College Students Can Make Tax Season Easier

Here’s a simple checklist for students (and parents) to keep it off “panic mode”:

1. Collect All Forms Early
   W-2s from jobs
   1099 forms (for freelance, gig work, interest, etc.)
   1098-T tuition statement
   Scholarship and grant statements
2. Know Your Status
   Confirm with your parents whether they’re claiming you as a dependent.
3. Track Side Hustle Income & Expenses
   Even a basic spreadsheet is better than trying to guess later.
4. Don’t Ignore Mail from the IRS or State
   Open it, read it, and if you’re unsure, get professional help.
5. Ask for Help When Things Get Messy
   Multi-state income, self-employment, scholarships, and dependency rules can get complex fast.

Final Thoughts: College Is Temporary—Good Tax Habits Are Forever

College students absolutely can be required to file taxes, and many more should file to claim money they’re legally entitled to.

The key questions are:

• Are you a dependent?
• How much and what kind of income did you earn?
• Were taxes withheld that might come back to you?

Getting this right now builds confidence, saves money, and sets you up for a stronger financial future as your income grows.

If you’re a student—or a parent of a student—and you want help sorting out who should file what and how to maximize refunds and credits, my team and I are here to walk you through it.

🔗 Read more at: www.thecrgroupllc.com/blog

📅 Want clarity on college tax rules for your situation?
Book a consultation with Dr. Cardenas

About the Author

Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy and tax planning, Dr. Cardenas helps students, families, and business owners file smarter, legally reduce taxes, and build long-term wealth and legacy. Learn more at www.thecrgroupllc.com

📌 Disclosure

This article is for educational and informational purposes only and is not intended to serve as personalized legal, tax, or investment advice. Filing thresholds, education credits, and dependency rules are subject to change and can vary based on your specific circumstances and tax year. You should consult with a qualified tax professional or review official IRS guidance before making decisions. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance and investment strategies may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.

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