US Resident and Nonresident Students Tax Requirements

If you're a student in the U.S., there are several tax forms you might need to be aware of, depending on your income, educational expenses, and financial aid. Here's a breakdown of the key forms:

1. Form 1040: U.S. Individual Income Tax Return

• Purpose: This is the standard form for filing their taxes.
• Who Uses It: Most students will use this form to report their income and claim any applicable deductions or credits.
• Nonresident's student: Will use 1040-NR form in order to file their taxes.
  

2. Form W-2 / W-4: Wage and Tax Statement

• Purpose: Reports the income you earned as an employee.
• Who Provides It: Your employer should send this form to you by January 31 of the following year.
• What You Do: Use this form to report your wages and the taxes withheld from your paycheck when you file your Form 1040 or 1040-NR.

3. Form 1098-T: Tuition Statement

• Purpose: Reports the amount of tuition and related expenses you paid to your school.
• Who Provides It: Your educational institution.
• What You Do: Use the information from this form to claim education-related tax credits or deductions.

4. Form 8863: Education Credits (American Opportunity and Lifetime Learning Credits)

• Purpose: Used to claim education credits, such as the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).
• What You Do: Attach this form to your Form 1040 if you qualify for education credits.

5. Form 1099-Q: Payments from Qualified Education Programs (Under Sections 529 and 530)

• Purpose: Reports distributions from a 529 plan or a Coverdell Education Savings Account (ESA).
• Who Provides It: The financial institution managing your 529 plan or ESA.
• What You Do: Use this form to report and possibly exclude these distributions from your income on Form 1040.

6. Form 1099-INT: Interest Income

• Purpose: Reports interest income from savings accounts, scholarships, or other sources.
• Who Provides It: Your bank or other financial institution.
• What You Do: Include this income on your Form 1040 if applicable.

8. Form 1098-E: Student Loan Interest Statement

• Purpose: Reports the interest you paid on a qualified student loan.
• Who Provides It: Your student loan servicer.
• What You Do: Use this information to claim a deduction for student loan interest on your Form 1040.

9. Form 8880: Credit for Qualified Retirement Savings Contributions

• Purpose: If you contribute to a retirement account, like an IRA, you might be eligible for the Saver’s Credit.
• What You Do: Use this form to claim the credit if you're eligible.

Tax Credits and Deductions for Students:

• American Opportunity Tax Credit (AOTC): Worth up to $2,500 per student for qualified education expenses for the first four years of higher education.
• Lifetime Learning Credit (LLC): Worth up to $2,000 per return for qualified tuition and related expenses for any postsecondary education.
• Student Loan Interest Deduction: Allows you to deduct up to $2,500 of the interest you paid on student loans.

Filing Tips:

• Even if you're a dependent: If you earned income or have educational expenses, you may still need to file your own tax return.
• Claiming education credits: You cannot claim the same expenses for both a deduction and a credit.
• Scholarships and grants: Generally, they are not taxable if used for tuition and fees but may be taxable if used for room, board, or other non-qualifying expenses.