College athletes are among the most economically challenged of all student groups. Their economic realities often make it difficult for them to succeed on and off the field. With higher demands placed upon them in academics, training rigour, travel time and more, college athletes need help with their financial obligations. But understanding how your taxes work and taking advantage of available deductions can be vital in helping you and other college athletes thrive financially.
So if you or someone you know struggles with finances during college athlete life, read on for valuable information! In this article, we’ll cover four tax tips that will help college athletes save money on their taxes—allowing them to focus more energy on their studies and achieving success in competition.
1- Claim Your Scholarships as Taxable Income
In today's world, earning a scholarship can be just as important as working to make money. College athletes often find themselves in a great position when it comes to getting scholarships. That's why one of their most important tax tips is to claim their scholarships as taxable income.
Although scholarships may seem like non-taxable income, they are taxable and should be reported on your taxes. Taking advantage of this beneficial tax advice ensures college athletes receive all the benefits associated with their Earned Income Tax Credit, which could potentially mean thousands of dollars in additional returns.
Those taking the time to recognize and proactively act on this crucial information can reap many benefits while avoiding potentially unpleasant consequences. If college athletes take the necessary steps, they can make it work and not get bogged down with the finances.
2- Deduct Your Equipment and Travel Expenses
College athletes have enough to worry about with stressed schedules and team commitments. The last thing they should be concerned about is how to pay for the equipment, uniforms, and travel expenses incurred due to participating in their sport. Most college athletes need to be aware that they can deduct their sports-related expenses from their taxes! These expenses include purchasing specialized equipment, uniforms, and any travel costs associated with training or attending events.
Not only will this deduction help athletes save hundreds or even thousands in tax money, but it is also an excellent way for them to take control of money management during their college studies. If you’re a college athlete looking for a financial boost this philosophy season, look no further than your local tax consultant for advice to get the most out of your costly sports investments!
3- File Taxes Online
For college athletes with a busy schedule of practices and games, filing taxes online can provide a significant benefit. Using online tax services eliminates the need for a trip to the accountant, saving valuable time and allowing you to handle your taxes from anywhere at any time. Furthermore, online tax services are typically more affordable than other firms, making them an excellent choice that can save you money while ensuring accuracy due to their comprehensive online support systems. With these services, college athletes don't have to choose between making it to practice on time or filing taxes before the deadline; they can do both!
4- Keep Careful Records of all Your Athletic-Related Activities
Tax season can be overwhelming for college athletes, especially when it comes to detailing all the income they receive from their athletic activities. Luckily, a simple tax tip will benefit them greatly: keep detailed records of all your athletic-related activities. This includes money earned from stipends, rental fees, tournament winnings and more. Accurate records for each monetary and non-monetary transaction ensure that you receive every tax deduction and credit you are eligible for.
Additionally, having proper documentation serves as proof should the CRA request additional information about your athletic income or investments. College athletes often have a lot on their plate, but tracking and saving their records are worth taking the time to organize to maximize their federal taxes savings.
Final Words
Filing taxes can be daunting for anybody- let alone student-athletes trying to stay on top of schoolwork, practices, and games. But it's essential to file correctly and on time to avoid penalties. Tax tips specifically for college athletes should make the process easier. We're here to help! Please contact us if you have more questions or need help filing your taxes.