Filing taxes owing student loans

 

filing taxes owing student loans

If you have a balance owing for 2015, we charge compound daily interest starting May 1, 2016 , on any unpaid amounts owing for 2015. This includes any balance owing if we reassess your return. In addition, we will charge you interest on the penalties starting the day after your return is due . The rate of interest we charge can change every three months. See Prescribed interest rates .

If you have amounts owing from previous years, we will continue to charge compound daily interest on those amounts. Payments you make are first applied to amounts owing from previous years.

If you owe tax for 2015 and do not file your return for 2015 on time , we will charge you a late-filing penalty. The penalty is 5% of your 2015 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months .

Filing taxes owing student loans

The details to your specific situation ( such as your filing status, number of children, etc. ) will determine how you complete your W-4.

If you’re being claimed as a dependent on someone else’s tax return, you’ll most likely want to claim zero allowances. This is because your parents are claiming you as an exemption, rather than you claiming yourself.

Your W-4 form may be the only leeway that the IRS gives you. Take advantage of that. You get to decide how much or how little you pay them throughout the year. The actual total tax you pay does not change; just pay now or pay later. If your circumstances have you adding up a high amount  of allowances, you can always claim less and get more of a refund after filing. Some taxpayers actually prefer to pay more over the course of the year instead of getting more in their paychecks. You can even claim zero allowances so that the maximum is withheld. In most cases, this will guarantee you a tax refund from the IRS since more than necessary was withheld throughout the year.

If you have a balance owing for 2015, we charge compound daily interest starting May 1, 2016 , on any unpaid amounts owing for 2015. This includes any balance owing if we reassess your return. In addition, we will charge you interest on the penalties starting the day after your return is due . The rate of interest we charge can change every three months. See Prescribed interest rates .

If you have amounts owing from previous years, we will continue to charge compound daily interest on those amounts. Payments you make are first applied to amounts owing from previous years.

If you owe tax for 2015 and do not file your return for 2015 on time , we will charge you a late-filing penalty. The penalty is 5% of your 2015 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months .

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If your kids discovered the joys of capitalism this year, raking in the dough from paper routes or pizza delivery, or receiving stocks or bonds instead of toys for their birthdays, they may also get to experience the joy of taxes this April. You may be surprised to find that, as dependents, your children face different rules concerning when to file taxes, and on what income, than you do.

When you pay your own taxes, you’re entitled to a personal exemption of $4,000 for tax year 2015. Therefore, the first $4,000 of your income isn’t taxed. When you claim your children as dependents , you get to deduct their personal exemption on your taxes, which means they don’t get to use it.