Everyone knows that filing taxes is a standard and necessary act and that it’s important to make sure you have settled up with the internal revenue service before proceeding into the next fiscal year. But, your taxes don’t just affect, they are also important to the student that you have in the house who is college bound.
The high price of education often means that your child cannot count on you to pay the bill for their college tuition, so alternative sources of funding, such as grants, federal aid and loans, have to be turned to in order to pay their tuition. In their quest for student loans through FAFSA or through grant money, they need your help in order to be approved. These government bodies don’t just want to know the student’s income, they also need to know what your income is, as in most cases the student lives with you and they receive some sort of support from you.
Of course, if your child is employed then they need to make sure that they are filing their own taxes. One advantage is that in most cases you and your child are eligible for a free efile. (This would not be able if you have a complex tax situation or other extenuating circumstances.) And, your child can certainly file with a free efile if they make less than 50k a year.
The question most parents have as it relates to their child and educational funding is that if their child works, can they put them on their taxes? This is a judgment call for most parents. Truthfully, you can do either. A parent might want to weigh the benefits and the costs involved and proceed at whatever makes more sense financially. Your taxes are of vital importance, not just to you and the government, but also for your child’s education.
