USF Instructor Available for Interviews on Tax Season, Important Changes Taxpayers Should Know This Year

TAMPA – As many taxpayers scramble to file prior to the federal deadline in April, a USF accounting instructor is ready to share his advice and expertise that could help people save money.

Luke Richardson can also provide valuable insight about important changes this year that could affect millions of Americans.

Teachers are getting a little extra help this tax season, as they can now write off costs related to professional development. This is in addition to reimbursements for school supplies.

”The new law also indexes the $250 ceiling to inflation, so we should expect to see this threshold increase over time,“ Richardson explained.

Taxpayers should also be aware of new penalties for not filing or paying taxes on time.

Through The Trade Facilitation and Trade Enforcement Act passed by Congress, individuals who don’t file at all prior to the deadline will be assessed a 5 percent penalty for each month that taxes aren't paid in full. For example, someone who owes $1,000 in taxes and files two months late would face a $100 penalty.

However, the penalty for filing taxes on time but not paying the full amount owed is much lower. Those penalties are one-half percent of the amount of the unpaid tax for each month it’s delinquent. Using the same example of someone who owes $1,000 in taxes, by filing on time and paying two months late, they would only face a $10 penalty.

”What that means is that even if you don’t have the money to pay your tax bill in whole by the deadline, you should still file a return,“ said Richardson, who is also a certified public accountant and Internal Revenue Service enrolled agent. ”The IRS does offer payment plans. Not filing a return is not a good answer.“

Some veterans could get a larger tax return this year. Congress passed the Combat-Injured Veterans Tax Fairness Act in December 2016, encouraging veterans to file amended tax returns.

"Severance payments for combat-injured veterans are generally excluded gross income, but unfortunately, tax was improperly withheld on many of these payments,“ Richardson said, noting the issue dates back to 1991.

Procrastinators also catch a break this year, as taxes aren’t due until Tuesday, April 18. The typical April 15 deadline falls on a Saturday, and April 17 is Emancipation Day, an officially observed holiday in Washington, DC.

The University of South Florida, established in 1956 and located in Tampa, is a high-impact, global research university dedicated to student success. The USF System includes three, separately accredited institutions: USF; USF St. Petersburg; and USF Sarasota-Manatee. Serving more than 49,000 students, the USF System has an annual budget of $1.6 billion and an annual economic impact of $4.4 billion. USF is ranked in the Top 30 nationally for research expenditures among public universities, according to the National Science Foundation. In 2016, the Florida Legislature designated USF as ”Emerging Preeminent,“ placing USF in an elite category among the state’s 12 public universities. USF is a member of the American Athletic Conference.