FeaturedApril 03, 2026

Ask the Expert: Happy Tax Day

Written By: Ian Silvester

In 1789, Benjamin Franklin popularized the proverbial adage, “In this world, nothing can be said to be certain, except death and taxes,” a quote from Daniel Defoe, an English writer and journalist, roughly 60 years prior. 

Today, the sentiment remains true. And every April, Uncle Sam calls to collect.  

We recently sat down with Dr. Dillon Walker, an assistant professor of accounting and certified public accountant. Before becoming a professor, Walker spent the better part of a decade working in the tax business. He joked that he often receives texts from friends around tax time that start with, “Hey Dillon, I have a tax question for you.”  

With the April 15 deadline quickly approaching, Walker shared some helpful insight on ensuring taxes are ready to be filed. 

When are tax returns due, and what if I can’t file in time? 

The due date for 2025 tax returns is Wednesday, April 15, 2026. Generally, individual income tax returns are due on April 15 each year, but occasionally the due date is one to three days later because of weekends and holidays.  

If you can’t file your tax return by the due date, you can file for a 6-month extension that extends your due date to October 15. This page on the IRS’ website provides details on the three different ways that you can request an extension. 

It is very important to note that this only extends the time to file the return, not to pay any taxes that may still be owed for the tax year.  

A tax return is really just a set of forms with information about your income, deductions, and credits; the federal government still wants the money on time. Ask yourself: If I filed my tax return today, would I get a refund or have to make a payment? Generally, if you have to make a payment, you need to make it by April 15, or you may be subject to penalties and interest. Of course, without preparing the return, it may be difficult to know exactly how much to pay. Most people estimate what they will owe and then add a bit extra as a cushion—you can get the difference back when you file the tax return later. There are also rules that may allow you to pay a bit less based on your prior year’s tax. 

Don’t forget about state tax returns! In many states (including Arkansas and Oklahoma), requesting a separate state extension is not necessary as long as you have an approved federal extension. However, states still require payments to be made by the original due date, just like the federal government. 

What are the tax implications of going to college? 

Education is generally a tax-favored activity, so there are quite a few implications. Here are several items to keep on your radar: 

• To the extent your scholarships are used for qualified education expenses (such as tuition, fees, books, and supplies), they are not taxable income. However, if your scholarship exceeds these qualified expenses, the excess is taxable income. For example, if you received $8,000 in scholarships in 2025 and you spent $6,000 on tuition, fees, books, and supplies, then the $2,000 excess is taxable income. Moreover, scholarships that pay room and board are taxable income (even if you technically didn’t receive them in cash). 

• Student loan proceeds are generally not taxable when you receive them since you will eventually pay the money back. When you start repaying student loans in the future, the interest on these loans is generally tax-deductible, which will reduce your taxes in those years. 

• There are two main tax credits related to education. The first—and most advantageous—is the American Opportunity Tax Credit, which allows a tax credit based on how much you pay for tuition, fees, and other course materials during your first four years of college as you pursue a degree. The second is the Lifetime Learning Credit, which allows a tax credit for classes taken to acquire or improve job skills. One important note about these credits is that if you are claimed as a dependent on someone else’s return, you cannot claim these credits on your own return (but the person you’re a dependent of may be able to claim the credit). Moreover, you can generally only claim one of these credits each year—not both. 

• A 529 plan is a powerful tool for paying for education, especially if you’re thinking long-term for your future children or other relatives. They are essentially investment accounts that can grow tax-free as long as the money is used to pay for qualified education expenses. Imagine that you purchased $1,000 in stock today using a 529 plan in hopes that it would grow and that you could give that money to your son when he starts college in 15 years. If it’s worth $15,000 when your son is in college, then you could withdraw all $15,000 tax-free to pay for his college expenses. If you had not used a 529 plan, then the $14,000 gain (when you sell the stock to get the cash) would be taxable. Even small amounts each month or each year over time can add up. 

These are very high-level descriptions of some education tax benefits, and each one has potential nuances and limitations. For example, you are not allowed to “double dip” with your education expenses, such as claiming an expense for a credit that was actually paid for by a scholarship. 

Is there anything else to think about if I get a refund? 

It’s always a good feeling to get money back when you file your tax return. However, if you regularly receive large refunds, it may be worth updating your tax withholding. Most people pay their tax throughout the year through withholding from each of their paychecks—money that we earn but never see because our employer sends it directly to the federal government on our behalf. 

Consider this: Would you rather receive $3,000 at once in the spring after filing your tax return, or an extra $250 each month from January to December? There isn’t necessarily a right or wrong answer. It is ultimately just a timing difference in when you receive the money. However, if receiving the money sooner would be helpful (perhaps paying extra on your mortgage throughout the year or earning some interest by putting it in a savings account), then you can use the IRS’ tax withholding estimator to update the amount your employer withholds from each paycheck (keep in mind that after using the estimator, you still need to provide Form W-4 to your employer to actually make the change). There are some nuances with things like credits that can’t be received in advance, but generally, it is possible to increase your take-home pay throughout the year by reducing the refund you receive later. Consult with a tax professional before making significant changes, as withholding too little throughout the year can lead to unpleasant surprise payments, penalties, and interest. 

What is new this year, and what should I be aware of for next year? 

The One, Big, Beautiful Bill Act was signed into law on July 4, 2025, and made several notable changes to the tax law. For the 2025 tax year, there are new provisions that effectively eliminate the federal income tax on certain tips and overtime compensation. Also in 2025, there are new deductions for certain car loan interest and for seniors. There are numerous details and limits to these deductions. For example, only tips in certain industries are eligible, and the car loan must have originated on or after January 1, 2025, on a vehicle that underwent final assembly in the United States. However, if in 2025 you received tips, received overtime compensation, paid car loan interest, or were age 65 or older by the end of the year, then make sure that you and your tax professional consider these new provisions. 

One significant change for 2026 relates to charitable contributions. If you donate to your church, a nonprofit, or other charitable organization in 2026, keep your receipt! While donating to charity is always commendable, taxpayers historically haven’t received a tax benefit for doing so unless they are one of the relative few who itemize their deductions. However, beginning in 2026, effectively all taxpayers will be able to deduct up to $1,000 (or $2,000 if married filing jointly) of charitable contributions. Those who itemize will still be able to deduct more of what they donated (though there are some new limits as well). 

Who celebrates Tax Day? 

Some businesses do! Historically, businesses such as Buffalo Wild Wings, Casey’s, Freddy’s, Great American Cookies, and Papa John’s have offered deals to celebrate Tax Day. Be on the lookout this year! 

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