Young adults fear tax season more than any other age group - DatelineCarolina

Young adults fear tax season more than any other age group

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Jonathan McWaters says there should be a class focusing on filing taxes Jonathan McWaters says there should be a class focusing on filing taxes
Clay Dickson says the tax formula is based on earnings Clay Dickson says the tax formula is based on earnings

By Raven Bouie

Tax season has several USC students worried about filing taxes.

A new online survey conducted by NerdWallet and Harris shows that about 80 percent of taxpayers between ages 18-34 fear preparing their taxes because they're afraid of making mistakes.

USC marketing major Jonathan McWaters says filing taxes should be taught in the classrooms.

"I took a ton of classes that don't relate to anything I'm doing. They could have easily made a class about taxes and filing them since we all have summer jobs and internships," said McWaters.

Students are also unaware of how student loans can affect taxes. They have the opportunity to deduct student loan interest from their income if they paid interest on student loans last year and made less than $80,000. They can lower taxable income up to $2,500 if their parents took out the loan, or take the deduction if they're paying loans still in school.

Graduate accounting major Clay Dickson says the tax formula depends on income and with over $20,000 in student loans the deduction would help him.

"It's based off what you make. It's based on your AGI, which is adjusted gross income - that's after you take out the deductions and everything," Dickson said. "Student loans have really high tax interest so anything taken off would definitely be beneficial."

For students to accurately file their taxes they will need a W-2 form, 1098-T form, a tuition statement from their school, 1098-E form and a student loan interest statement.

For more information students can contact their schools office of payroll for advice about taxes.

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