Requirements
Generally, U.S. citizens, Green Card Holders or Resident Aliens for Tax Purposes who receive any type of payments, e.g., salary, stipend, honorarium, scholarship, prizes, interest, dividends, etc. are required to file a Federal Tax Return. For information on the different types of income see this article.
However, if you earned less than $8,950 for 2008 and don't have any special circumstances (see here for an easy test), you do not have to file a federal tax return.
Even if you are under this threshold, if taxes where withheld from your paycheck, you might want to file a tax return to get those taxes back.
Most States, including Vermont, California, Massachusetts, and D.C., also require you to file a tax return. See here for more information on State returns.
Filing
You have basically two choices:
- You fill out the return manually
- You fill out the return with the help of a tax software
Either way you can then send the return via postal mail or file it electronically. We recommend filing electronically as you will get confirmation that the return was submitted and if there is any refund due to you, you will get it much faster.
The IRS provides information on the forms to choose if you want to do it manually but also gives you links to FREE software. See here.
NOTE: If your adjusted gross income is $56,000 or less in 2008 software companies offer free tax preparation and e-filing.
How To's
What you need to fill out your federal income tax return:
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) if applicable of yourself and your child if the child is a U.S. citizen or resident alien for tax purposes
- Last Year's Federal Tax Return if you filed one and if you want to file electronically
- Form W-2 (employment income) if any
- Form 1098T (scholarship income) if any
- Form 1042S (employment and or scholarship income) if any
- Form 1099MISC (self-employment income or prize income) if any
- Form 1099INT or 1099DIV etc. for Interest and Dividend Income
- Form 1099G (state tax refund from previous year) if any
- Checking account information, i.e., account and routing number for direct deposit of tax refund if any
Some notes on filing your federal income tax return:
- If you received a Form 1042S, but it turns out that you actually were a resident alien for tax purposes, please contact the Tax Office, so that we can update our records accordingly. You do need to report any income from income code 15, exemption code 00 under scholarship income. If you already paid tax for the scholarship income (see Box 7), you need to report that amount paid in order to get a refund. If your 1042S is showing income from income code 17, 18, or 19, please contact the Tax Office to find out whether you were eligible for the treaty benefits in this tax year. If you were, check here how to report the treaty benefits. If you were not because of your new status, you will have to report that income as wage income.
- For your taxable scholarship you have in theory to take your Form 1098T and calculate Box 5 (scholarship) less Box 2 (tuition). Any amount greater than tuition is taxable. However, Middlebury College shows tuition billed not paid. Thus, instead of using Form 1098T find out how much tuition you actually paid during the calendar year (look at your bank statements) and subtract the amount of aid you actually received in that calendar year. Do not attach Form 1098T to your tax return. See this IRS article for more information.
- You might be able to claim an education (Hope and Lifetime Learning) credit. For an overview see this article. Detailed information is available in Publication 970.
Remember: Tax Returns (Federal and State) are due postmarked or sent electronically on April 15.
Last Updated: April 17, 2009