US citizen student with non citizen parents

[Cvam]

Can I use turbotax to file. I am in college in Iowa. I am 19 and my parents are not citizens and live overseas. 

They worked in the USA in 2012 and have SSNs from back then. They work in their home country.

Do I need to file Iowa state taxes. I work on campus and joined college in aug 2024. I turned 19 in oct 2024 and this is my first time filing taxes. I have never worked anywhere prior to aug 2024 and do not have any overseas income or bank/trading accounts.

[Vanessa A · Accepted solution]

Yes, if you are a US Citizen, you can use TurboTax to file your return.  The citizen status of your parents do not affect your filing requirements if you are a US citizen and have income.  Meaning it does not make you have to file or allow you to not file.  It just means when you file, you would not be considered a dependent of another taxpayer. 

As to whether or not you need to file depends on how much income you earned from August to the end of the year.  If your earned wages were less than $14,600 or you did not have self-employment income of more than $400, you would not need to file a return unless you are claiming a refund of taxes withheld.   

For Iowa, you would need to file if your taxable income was over $9,000 since that is where you are working and earning the money. 

Check if you need to file a tax return

You must file an Iowa return if.

[Cvam]

Thanks Vanessa, I really appreciate your comprehensive answer.

I made less than $3,000 from august to december 31, 2024, working on student jobs at the university. I was awarded a couple of university scholarsips worth $16,000 per year and pell and state grants. I have my w2 and 1098T. Is there any possible advantage to my filing taxes? As in, are there govt benefits I can avail by merely filing a tax return? I am currently a college freshman

[AmyC · Accepted solution]

It depends. There are many credits. The most common for which you may qualify is the education credit. You can review the IRS website on deductions and credits. The IRS has a great brochure that explains how scholarships and tax credits interact. Determine if you have taxable income and how to report with Tax Topic 421. 

References:

IRS Education Credits - AOTC and LLC