2005 Tax Year: first time I won't be a dependant!

[fbrdphreak]

Hey all,
This tax year is the first year I won't be claimed as a dependant and I really want to maximize my tax return next year.
I'm in my third year of college, graduating next May (theoretically). I have student loans for every semester of school except one, I buy all my own textbooks, used a student loan to get a laptop last year, and I basically pay for EVERYTHING except my car insurance.
One thing I have seen when doing TurboTax online before is asking if you have paid interest on educational loans or purchased anything school related: I assume that I can get any of this back on my tax return?
I'm very new to this and really have no idea what I should do to help maximize my return. I would appreciate any advice you all have on this.
Also, I'm planning on buying a new car towards the end of the year; would this play into it at all?
Thanks in advance!

 

[NoUrENemY]

I'm in the same situation.... and I have no idea

 

[Yossarian]

see the stickied tax thread please. unless you use your car for business, charity, or travel for medical treatment it isn't a factor in your return.

 

[Baked]

ATOT's Second Annual Tax Time Thread!

 

[Rock Hydra]

Have children. As many as possible as quickly as you can.

 

[iversonyin]

Get married to lower your tax bracket and start claiming dependants (child(ren)) as soon as possible.

 

[FoBoT]

your goal is misguided. you should want to pay less taxes, not want a larger refund, they are not the same thing.
if you make more money, you will pay more taxes, so again, it is not clear what your true purpose is. the simple way to pay less/no tax is to make very little/no money. this is an easy task for millions of americans, i am not sure why you would need to post on OT for advice on how to make no money.

 

[KingNothing]

Originally posted by: FoBoT
your goal is misguided. you should want to pay less taxes, not want a larger refund, they are not the same thing.
if you make more money, you will pay more taxes, so again, it is not clear what your true purpose is. the simple way to pay less/no tax is to make very little/no money. this is an easy task for millions of americans, i am not sure why you would need to post on OT for advice on how to make no money.

Indeed. You want to pay as little tax as possible AND have as small a refund as possible, otherwise you're just giving the government an interest-free loan.

Just keep receipts for school-related stuff you buy. Textbooks are deductible, I know that. Not sure what else is, I have an accountant do my taxes.

 

[iamwiz82]

Originally posted by: KingNothing

Originally posted by: FoBoT
your goal is misguided. you should want to pay less taxes, not want a larger refund, they are not the same thing.
if you make more money, you will pay more taxes, so again, it is not clear what your true purpose is. the simple way to pay less/no tax is to make very little/no money. this is an easy task for millions of americans, i am not sure why you would need to post on OT for advice on how to make no money.

Indeed. You want to pay as little tax as possible AND have as small a refund as possible, otherwise you're just giving the government an interest-free loan.

Just keep receipts for school-related stuff you buy. Textbooks are deductible, I know that. Not sure what else is, I have an accountant do my taxes.

this thought process is good, in theory, but it is very rarely good in the real world. How much would you buy in excess if you had the extra $100 a month? I'm sure that pretty much everyone here would continue to spend. I like having a return because otherwise I would have nothing to show for the extra $1200, for the most part.

Back on topic, I'll be independant for the first time, as well. However, I am also buying a house and getting married this year, so there will be no single filing for me.

 

[fbrdphreak]

Well, I guess I am more referring to what items I might be able to now get reimbursed for on my tax return; particularly dealing with my student loans, interest on those loans, and any school related purchases.
Making as little money as possible is not an option for me; I'm trying to (A) pay off the last few hundred on my credit card (B) save for a car and (C) have money left over to sit in a savings acct. So making money is kind of my primary goal.
I've posted in the Tax Thread, hopefully those guys might be able to help
Thanks!

 

[FoBoT]

Originally posted by: fbrdphreak
So making money is kind of my primary goal.

:thumbsup:

good luck on that!

 

[jadinolf]

Originally posted by: RockHydra11
Have children. As many as possible as quickly as you can.

Yep. Just marry a gal with a bunch of kids.

Problem solved.

 

[NoUrENemY]

All good thoughts. I know for certain student loans interest is deductable. Depedning on how much you have taken out on loans it might not be worth it since the interest earned is generally so low. The school books and expenses might be nice though since those are pretty heavy in expenses throughout the semisters..... Basically you are A) single and B) in a young tax bracket. Just like me. The government rapes us :S

 

[wiredspider]

I haven't been able to claim textbooks because they aren't required for my enrollment at college.