I am a current freshman in college and am receiving financial aid. I have a few questions.
Is there still an advantage to applying as early as possible for federal aid even though I am a returning student (not first year)?
I had a paid internship this summer and have been doing work study this semester. I don't think I've made that much. Is there a minimum income I need to have to file taxes?
My internship and my work study should provide me with W2s (or W4s; I don't know which is which) in the mail or online, correct? This will be my information to fill out taxes/know my actual income? When are these sent out?
Thanks for the help!! I’m a bit worried that I am going to mess up my taxes/financial aid this year.
Yes, apply early because you are applying for next fall /spring, not this semester. Employers mail by 1/31 but check online. The fed govt posts them online for fed employees. You don’t have to file if you didn’t earn at least $6200 if you are a dependent, but you may want to. You may have had withholding so you would get a refund, and it is often easier to provide a tax return than to prove you didn’t need to file.
I would wait and post the tax questions after you receive the W-2s and/or 1099s. Sometimes internships are reported on 1099s which complicates things and isn’t as good for you. That would also change some of the answers to your tax questions. Did you receive pay stubs while you were working the internship and were taxes withheld each pay period? You should get all documents by the first few days of February at the latest. Sometimes they are only online unless you request them to be mailed. Did your internship employer say anything about that? Also your college may email about how to access tax documents online.
W4 is the form you fill out when you start a new job or as a current employee every year, it specifies how much withholding allowances you claim. For example single with 0 allowances.
W2 is the form the employer issues in January for the previous year and lists income and deductions like federal tax withheld, social security tax, state tax withheld for the year from your work earnings.
If you are an SEOG or Perkins loan recipient now or think you might be eligible for those things next year, file that FAFSA asap. If you are talking about direct loans and/or Pell only, then no, there is less need to get the paperwork in right away. Schools often have a later priority date for returning students. If you’re not eligible for the limited pools of federal aid, just file by the school’s priority date.