Spring time means several things at UCLA. It means missing class
to go to the beach. It means three months to go before summer. And
it means filing taxes.
The April 15 deadline for non-extended tax returns is rapidly
approaching, but even if students have done nothing to prepare, a
solution may be right at their fingertips.
Since many college students are considered low-income earners by
tax standards, their tax returns are usually simple and can be
completed through several free programs available to UCLA
students.
The Volunteer Income Tax Assistance Program, which operates
Monday through Friday, noon to 6 p.m., provides UCLA students and
community members with free tax assistance.
Sponsored by the Internal Revenue Service, USAC and several Big
Five accounting firms, VITA often takes as little as 30 minutes to
help students prepare taxes.
Michael Yeh, a fourth-year economics student and volunteer for
VITA, said the program is profitable for college students who wish
to save money and time.
“The program is beneficial to low-income students because
if they go to a CPA, it will probably cost 50 dollars for a return
that may only get back 40 dollars,” Yeh said.
The IRS also offers tax preparation programs for low-income
citizens, which most students are eligible for, according to Larry
Wright, western area media relations manager for the IRS.
One such program, called Tele-File, allows people to file their
taxes over the phone in a short amount of time.
“The advantage to tele-file is it is really, really fast.
For most people (it takes) less than 10 minutes,” Wright
said.
Low-income students typically qualify for Tele-File and
automatically receive information that allows them to do their
taxes over the phone, Wright said. Students who do not
automatically receive the information can request it for the next
year.
Other IRS options include filing taxes for free at the IRS Web
site using e-file.
Wright said e-file eliminates the most common mistake when
filing taxes ““ calculation errors.
Gordon Settle, a tax consultant for H&R Block, said
Tele-File or e-file is the way to go for a student with
uncomplicated taxes.
Settle also said that in most cases, students do not even need
to file their taxes, since many do not make enough to owe money or
alternatively do not expect a return.
“A lot of times, it is not worth it to file unless you
have money coming back,” Settle said. “A lot of
students don’t have refunds coming.”
If students wish to have more time to file their taxes, they may
request an extension — affording them four extra months — by
submitting Form 4868.
Extensions, however, are not a solution for individuals who hope
to delay paying money they owe the government.
“Here’s the thing to remember about doing
extensions; its just extra time to do paperwork, it’s not
extra time to pay,” Wright said.
Despite low-reported incomes, students need to be careful when
doing their taxes, as many have a tendency to file falsely.
“Students tend to look for things as deductible that
aren’t really deductible,” Wright said.
Students are also prone to look for tax write-offs in areas
where write-offs are not warranted, such as commuting to school or
cell phone bills, Wright added.
Another area of danger for employed college students is
reporting tips.
“You are required to report all income you receive and pay
tax on it,” Wright said. “Notoriously, students who
make tips do not pay taxes on all of it.”
He warned people who are not honest with their taxes.
“If you cheat (on your taxes) you increase the probability
you will get audited,” he said.