Tax Day has come and gone. But for students who forgot to apply for a refund, there’s still time.
The same can’t be said for individuals who owe the IRS money.
UF accounting professor Gary McGill said the deadline to file tax returns is strict.
“If you missed the deadline, then you’re going to be subject to certain penalties or interests on any unpaid tax liabilities,” he said.
However, McGill said those applying for tax refunds won’t face any serious problems by missing the deadline.
“The penalty and interest is based on what you owe the IRS,” he said. “If they owe you via refund, then the base for the penalty is obviously zero.”
McGill said it’s easy to get an extension to file a tax return after the deadline. However, he said an extension is simply a way to delay completing the paperwork.
“It does not give you an extension of time to pay any tax that’s due,” McGill said. “What you’re supposed to do is estimate what your tax liability will be.”
Filers should pay their calculated tax liability, the estimated amount owed, when they apply for an extension.
McGill said if someone doesn’t pay the correct amount, even after filing an extension, they will be charged interest and penalties for late payment.
Stephen Bolden, a 21-year-old UF finance junior and part-time student assistant for the Heavener School of Business, recently learned he is not required to pay taxes.
“Apparently, if you don’t work a certain number of hours per week and you’re a full-time student that makes below the minimum amount ... then you don’t get taxed,” he said.
Students under the age of 24 are considered dependents and are not required to file tax returns if they make less than $6,100 a year.
If students don’t meet dependency requirements, they must file returns if their annual income is more than $10,000.
Bolden said not paying taxes on time would probably be worse for someone with a lot at stake because the government can do things such as foreclose on homes and repossess cars to collect any money owed.
“I don’t think that would ever happen to me if I didn’t pay my taxes,” he said. “I don’t really have anything to lose.”
[A version of this story ran on page 1 on 4/17/2014 under the headline "Forgot taxes? For refunds, there’s time"]
