Issue date: 4/23/07 Section: Money/Health

Media Credit: Patti Gunderson

The word "tax" can evoke two different reponses with the typical college student, depending on the time of year. As it turns out, March and April are two months that can give students a headache, but can also put money in their pockets because of tax returns.

According to a recent Gallup Poll, 38 percent of Americans said they are paying for bills with their tax refunds, while 24 percent said they are planning to save or invest the money. And with the tax season fading into the sunset, investment, schooling and leisure will weigh heavily on students' minds when deciding where to put or spend their returns.

For junior Jayme Le Jeune, tax filing doesn't resonate strong feelings of distaste.

"It doesn't really matter to me because my parents usually help me out because someone does their taxes," she said.

Le Jeune said her returns were a significant amount for a college student, and added she is planning on putting the money toward rent for her house.

"My returns are still coming, but I'm going to put it towards my rent for next year," Le Jeune said. "I'm working on paying off my full year's rent before I move in."

Having to pay for college and rent, Le Jeune said, makes her save money when she knows she needs it. Still, she said there are a variety of other places the money could be put to good use.

"I could use it to go towards tuition for next year," Le Jeune said. "A lot of people don't get a lot back so they go blow it on something instead of saving it."

Senior Angela Dekanich also said she got more money back than she expected.

Like Le Jeune, Dekanich said she is spending her refund on rent, but is looking to diversify the rest of the money. She said her dad typically does her filing because it's too big of a hassle.

"I already spent most of it on school and I'm saving for a summer trip to Mexico," Dekanich said. "Unfortunately, rent is thrown in the mix too."

Amy Vik, master tax adviser for HR Block, 404 S. Barstow St., said she recommends students save the money they get back from the government because it could pay off in the future.

"Use money for retirement plans, even now," Vik said. "It's so important and everyone should save the money when they get it."

Perhaps the biggest stress from filing taxes for students - as well as the average person - comes from claiming dependency, Vik said.

"The biggest thing is whether or not (students) are claimed by their parents," Vik said. "That's the biggest mistakes we see most of the time during filing."

Vik said as long as a student is 23 years old or younger or is a student for five months out of the year, their parents can claim them as dependents.

Financial aid forms and the Free Application for Federal Student Aid (FAFSA) also consider students as dependents and it is recommended that taxes are filed promptly, she said.

"Dependency is the biggest issue with students," Vik said. "Filing by the deadline is always best no matter who you are."

When it comes down to it, Dekanich said she doesn't worry about all the work normally associated with filing tax return forms because of the reward.

"I don't mind tax time," she said. "I like it because I get my money back."

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