Three Common Mistakes Students Make on Tax Returns

For the past two tax seasons, I have been fortunate enough to be qualified and worked as an income tax preparer at Volunteer Income Tax Assistance (VITA). VITA is a student-run organization where IRS-certified volunteers provide free tax preparation and assistance to individuals and families who make $69,000 a year or less.  

Before joining the UC Davis Master of Professional Accountancy program, I earned my B.S. in accounting from San Francisco State University, so that background and experience allowed me to volunteer with VITA.   

Serving Community Clients 

The training for VITA is extensive. Starting at the end of January, incoming and returning volunteer students attend a week-long training from 8 a.m. - 4 p.m. everyday to refresh and absorb their tax knowledge.  

During the training, we learned how to use the electronic filing software with Taxslayer and practiced on the software with simulated tax returns. We were also required to complete the IRS training to become a student tax preparer. We had to pass five exams—volunteer standard of conduct, intake/interview and quality review, basic, and advanced exam—before we could start preparing tax returns for our community. 

The experience was very insightful. I realized there are several common mistakes and misperceptions that people make when it comes to filing their federal and state taxes.  

With the tax season upon us, I thought it would be helpful if I shared some of the most common mistakes/misconceptions that I saw people make while filing their taxes. 

Top 3 Mistakes When Filing Income Taxes 

1. Don’t Be Late: Many people have overdue tax responsibilities and stake the past years’ taxes together and file them in the current year. Taxpayers do not realize this would lead them to penalties. The penalty for failing to file the tax in the current year due could lead to up to 25% of their total unpaid taxes.  
    
2. International Students Can Get Refunds with the Right Form: International students on J or F visas need to file tax returns on a Form 1040-NR if they have worked in the U.S., especially if they qualify under certain foreign country treaties. If they fill out this form, they can receive tax refunds. 
    
3. At Five Years, You’re a U.S. Resident: Some international students were filing as non-resident aliens for the previous four years, and tax preparers and individuals need to be aware that the fifth year will bring a status change. In fact, F and J visa holders are considered resident aliens after five years in the U.S. therefore they will become liable for Social Security and Medicare taxes. 

My time at VITA was an invaluable experience where I also learned that my fluency in Cantonese and Mandarin could also be an essential to assist clients. It felt good that I could provide education to clients about their returns and eligible tax credits in their home language.  

Ultimately, it was an educational experience for me to discover what I like or dislike about doing this type of work all day in an office. From the VITA experience, I now know that I want to work on the audit side where I can spend more time communicating with clients and working outside of the office.  

My experience in the MPAc program has prepared me well for the audit side of accounting. I’ve received offers to consider joining the audit teams at the San Francisco offices of Deloitte, BDO, EY, KPMG and PwC. I’m excited to start at Deloitte after graduating in June.