To qualify for in-state tuition, you must be able to prove that you are paying federal taxes. To show this, students must become independent for tax purposes in the most recent tax year and parents can no longer claim their students as dependents on their returns.
Please Note: This information should not be considered an official document. For additional information, please refer to the list of official documents at the end of this web page. InstateMe does not give tax advice. If you are seeking tax advice, please contact a professional tax consultant or the Internal Revenue Service at (800) 829-1040.
Step-by-Step Guide
What do I need?
1. Acquire a PDF of your tax return
1. You must be independent on your tax return
2. You must use your Texas address on their tax return
2. Rename this PDF “Student Federal Tax Return”
3. Upload this PDF of the tax return into your InstateMe portal
4. Have your parent acquire a PDF of their federal tax return
1. Your parents must not claim you on their tax return
5. Rename this PDF “Parent Federal Tax Return”
6. Upload this PDF of the tax return into your InstateMe portal
7. You may also want to learn about the American Opportunity Tax Credit
How do I get it?
1. Use any tax preparation method to begin the process
1. Commonly used options include an accountant, FreeTaxUSA, Cash App or TurboTax
2. Complete form Form 1040
If you own a business, you will report our income and expenses on your personal tax return using Schedule C.
3. You used your Texas address
4. Ensure that you are not claimed as a dependent
Miscellaneous questions
1. Can I use my Texas address for the return?
Generally, because students have a valid physical address in Texas, it would be appropriate to list your Texas address as your primary residence on your federal tax return. It is considered your primary residence as it is where you live, learn, earn income, and where you plan to spend the majority of your time going forward.
It's important to note that the IRS looks at a variety of factors to determine primary residence, including the address listed on your driver's license, voter registration, and other official documents, as well as where you spend your time. It's also advisable to keep records of your physical presence in Texas, such as lease agreements, utility bills, and other documents that prove your physical presence in Texas, in case of an audit. It's always good to consult with a local tax professional to ensure compliance with all state tax laws.
2. I don't have taxable income in Texas. Can I still use the address?
In general, you should list your Texas address as your primary residence on your federal tax return even though you have no taxable income in Texas and have taxable income in another state. You may file a non-resident state tax return for your home state, reporting only the income earned in that state and you would file a resident state tax return for Texas, reporting any income earned in Texas, and it will be zero income because you haven't earned any taxable income. It's always good to consult with a local tax professional to ensure compliance with all state tax laws and to claim any eligible credits to avoid double taxation. It's also important to mention that for the federal tax return, you will have to report all the income earned in both states.