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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Feb. 5, 2004)
on P>age$ • <2tly sta => ■ m ✓ house Aggielife The Battalion Page 3A • Thursday, February 5, 2004 1040 AXMAN ifusion over how to file taxes has students seeking help »=>age' inson noli L: By Kim Katopodis THE BATTALION eah Brat/ found a loophole that allows her to have less money taken out of her paycheck every month — if having a mi^jL^-year-oUi daughter can be considered a loophole, can As if students don’t have enough on their minds as tests begin and papers loom, the impending tax tiling deadline may become another stress. Students tax needs vary as different situations require different forms, payments and exemptions. The exemption that Bratz, a { ^ junior community health major. j n this faces is just one of the enigmas that characterize tax time, which World nothing will culminate on April 15. the til- can hp to hp ing deadline.These issues need Can 06 53,0 10 06 certain, except death and taxes. Benjamin Franklin not be a stress on students, said Dr. Joyce Cavanagh, a family eco- nomic specialist with Texas Cooperative Extension. "With the new electronic tiling 'system available through the IRS. 'students will he able to Tile their ■ the Mtaxes in a way that results in a it more accurate tax return." Cavanagh said. the software on the Web site, located at www.lRS.gov, asks a 'series of questions to ensure that people are able to get the correct 'tax font) for their needs. Cavanagh said. She said the problem Jmany students encounter is not knowing if their parents will claim- ■ ing them as dependents. Oftentimes, Cavanagh said, students don’t ■ know their parents have claimed them and will claim themselves, |resulting in a higher refund than they are owed. While more money may not seem like a problem t, Cavanagh said an error like this would cause a student to receive a bill from the IRS at a later date. "Most students will be able to fill out the 10-40 EZ form which is a relatively simple form,” Cavanagh said. "However, students (should be careful because most errors on tax forms are usually sim ple math miscalculations.” The Web site also helps students find out which exemptions and tax credits they qualify for. Within the Web site, students can get help with their taxes through the IRS’ Free File program, which offers free electronic tax preparation and filing through a partner ship between the IRS and 16 private companies, said Kenneth Tax Tip Sheet: "Look, we play 'The Star Spangled Banner' before every game. You want us to pay income taxes too?" -Bill Veeck, Chicago White Sox Yes Bill, but just know you're not alone. Vargas from the IRS’ Media Relations office. “If (students) act soon, they can have their tax refunds in time for the spring break holiday,” he said. One credit that is especially helpful to graduate students is the Lifetime Learning credit, Cavanagh said. ‘The Lifetime Learning credit is for people of all ages that are taking courses relating to their job,” Cavanagh said. “Say a student wants to get a master’s in accounting, they should look to see if they are eligible for the Lifetime Learning credit.” s One student who may benefit from this credit is sports management graduate student Bryan Talkington. Talkington was recently married, and he and his wife are expecting a baby in a month. ”1 am trying to figure out right now what the differences are between what I will get back now that I am married compared to what it was when I was single," Talkington said. “My wife's stepfa ther is an accountant, so he is Tiling our taxes for us.” Talkington is anticipating the refund most this tax season. “Our refund will be going toward baby bills,” he said. ”1 am working just under full time and going to school, so once the baby gets here we will have more need for funds.” Talkington’s options for next tax season could Earned Income credit, Cavanagh said. “A student may qualify for the Earned Income credit if they are a graduate student without children or under the age of 25 with dependent children ” Cavanagh said. “It is a special tax benefit for people who work and earn a low to moderate income.” This tax credit could be beneficial to Bratz, who works part-time on campus. The Earned Income credit is a refundable credit, Cavanagh said, which means if the credit is more than what a stu dent owes in taxes, the IRS will pay the student the difference. “For two or more children, it could be a maximum of $4,200,” she said. Bratz, and other students with children can also get a Child and See Taxes on page 4A Mahesh Neelakantan • THE BATTALION Number of individual income tax returns Gross Collections Percent of individual returns (millions of $) using paid preparers 0®3|p Percent of individual returns e-filed. Number of individual refunds (millions) Individual refund amount Number of taxpayers assisted by writing, calling or walking in Graphic by Andrew Burleson • THE BATTALION Source- IRS • o/rid Qlcwk (SSettoK'/ Relieve the stress of the day with any of our professional services. \ Voted Best in the Brazos Valley W Manicures ^ Pedicures W European Facials Warm Body Wraps W Microdermabrasion Body Waxing W Therapeutic Massage W Cellulite Treatments Gift Certificates Available! alleria f/7/ay (njjpa /. r l 214 ELM AVENUE • (979) 822-5756 • WWW.GALLERIADAYSPA.COM / Douglass Nissan Service (n0,j Department 1001 EARL RUDDER FRWY. S College Station SP Ag al'- e c« Oil & Filter Change $ New Filter Up to SO qts. 5W30 14 pt. Inspection Car Wash 764-7726 GCastrol 76%' OFF 19.95 w/coupon Parts & Labor w/coupon Not valid with any other offer. Offer expires 03-31-04.