Taxes

The very mention of paying taxes can bring on confusion and dread, but filing tax returns online can be easier and less stressful.

Doug Borkowski, financial counselor at the ISU Financial Counseling Clinic and lecturer in human development and family studies, said tax returns provide information to the IRS that helps determine how much money will be available to run government operations.

Borkowski asks, why pay someone to do your taxes, when you can do them for free online?

"Taxes aren't this big daunting thing," he said.

There are three different tax forms: The 1040, the 1040A and the 1040EZ. A person's financial status determines which form should be used.

Borkowski said Form 1040 is the "most inclusive for someone and the most complicated of tax returns." Business owners and people with many deductions use this form.

Form 1040A is not as complicated and allows fewer deductions.

Form 1040EZ a basic one-page form, applies to most college students.

"You earn wages, but you aren't worried about most of the tax credits," Borkowski said.

Who has to file tax returns?

"A lot of students wouldn't have to do a tax return [if] their income is low enough," Borkowski said.

Borkowski said dependent college students with income under $5,350 would want to inform their employer that they are exempt from withholding. This means they do not need to file tax returns.

However, dependent college students who make more than $5,350 must have income tax withheld from their pay and should file tax returns. By doing so, it's possible to receive a refund if the tax withheld is less than what you should have paid for the year.

How do I file tax returns?

"It's free to do [online], as long as your income is under $54,000," Borkowski said.

Borkowski said the first time someone files online, he or she has to send in an online filing form, but after that, the process will be "totally paperless."

Borkowski recommends TaxAct.com as a user-friendly site to do tax returns.

Some benefits of filing tax returns online are getting refunds back more quickly and- since online programs take you through each step - an easier process than the paper form.

Borkowski cautions those who intend to file their taxes online to do so from a secure connection rather than an unsecured wireless connection.

Fazli Sabri, graduate student in human development and family studies, who is married with a family, said he will use the money from his tax returns for his family.

"It should be no problem for other people to do," Sabri said.

When should I file my tax returns?

Borkowski reminds students that the deadline to file tax returns is April 15 - but it is possible to file for an extension.

If you are overwhelmed or have questions about tax returns, Borkowski encourages students to schedule an appointment at the Financial Counseling Clinic.

The College of Business also offers guidance with filing returns.

Tax Returns 101 tips from Doug Borkowski

Steps for filing tax returns online

1. Have a copy of your W-2 Form either on paper or online

2. Go to www.irs.gov

3. Click on "Use Free File to Prepare your Taxes" and Start Now

4. Pick a program

5. Read and follow the steps

Financial Counseling Clinic: Call 515-294-8644 to make an appointment