JRS Posted January 16, 2009 Report Share Posted January 16, 2009 Tax refunds will be delayed State Controller John Chiang announced today that he will delay paying tax refunds for at least 30 days. With no money in the State's General Fund for the past 17 months, the state has been paying its bills by borrowing internally from special funds and from Wall Street. The Controller estimates those funds will soon be exhausted, and the State will be at least $346 million short in February. "Delaying these payments will get us through the next few months, but it will not solve the problem," according to Controller Chiang. If no corrective action is taken by the Governor and Legislature, the Controller may have to extend delays in payments, or issue IOUs. Quote Link to comment Share on other sites More sharing options...
Booger Posted January 16, 2009 Report Share Posted January 16, 2009 Just curious.....does the "common man" in CA have any recourse against the State's holding his/her money? The way things are, I can see other states doing this. Wait until the Feds start doing it. Quote Link to comment Share on other sites More sharing options...
JRS Posted January 16, 2009 Author Report Share Posted January 16, 2009 NO!! Quote Link to comment Share on other sites More sharing options...
Virtual Managed Solutions Posted January 16, 2009 Report Share Posted January 16, 2009 I find this to be very wrong! BulldogTom brought up a good point in an earlier discussion though - wait until the news programs get a hold of that mother of 3 barely able to survive as it is and now California is with holding money / food from her children. That will stir up an out cry. Quote Link to comment Share on other sites More sharing options...
JRS Posted January 16, 2009 Author Report Share Posted January 16, 2009 - wait until the news programs get a hold of that mother of 3 barely able to survive as it is and now California is with holding money / food from her children. That will stir up an out cry. Sadly, our local paper will go out and find a young lady, slightly over weight, drinking her Pepsi and smoking her cigarette in her very cluttered and very small apartment, with her three children in the background. They have done it before and all the sympathy that should have went out, went right down the drain with the number of subscriptions the paper lost. Quote Link to comment Share on other sites More sharing options...
Virtual Managed Solutions Posted January 16, 2009 Report Share Posted January 16, 2009 It is sad how the world operates sometimes. Quote Link to comment Share on other sites More sharing options...
Booger Posted January 16, 2009 Report Share Posted January 16, 2009 Let's assume that CA doesn't issue the tax refunds until late 2009. What I would advise employed people to do now would be to change their CA withholding certificates and have the MINIMUM amount withheld (whatever the minimum is). If CA is in financial trouble NOW, wait till they see the tax remittances go way down throughout the year. Quote Link to comment Share on other sites More sharing options...
Virtual Managed Solutions Posted January 16, 2009 Report Share Posted January 16, 2009 We should start a campaign and make that happen. Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted January 16, 2009 Report Share Posted January 16, 2009 I saw one article using the figure of ~850 being the average CA refund for individuals. Instead of loaning CA the money through over withholding, what about lowering your withholding by your last year's refund? I just don't get using a tax payment as a no interest savings account. I'd rather have just enough withheld to avoid penalty, and pay a little on filing if I have to. I guess my point is anyone complaining about needing their refund should have looked at their withholding, especially since the CA budget "crisis" is not "news". They may enjoy more regular income over getting their earnings months later. The real pain is for those depending on a state funded check, like foster parents! Quote Link to comment Share on other sites More sharing options...
jainen Posted January 16, 2009 Report Share Posted January 16, 2009 >>The real pain is for those depending on a state funded check<< I had no idea I was causing such pain. I plead guilty to failure to pay estimates and plan to buck up the state treasury by a couple of grand in early April. It's the least I can do for the Bear Flag Republic. Quote Link to comment Share on other sites More sharing options...
JohnH Posted January 16, 2009 Report Share Posted January 16, 2009 I agreee with jainen. If you're not paying a small estimated tax penalty to fed and state, then you're not setting up your withholding or estimated tax payments properly. California has shed new light on this theory and is making it even more worthwhile. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted January 16, 2009 Report Share Posted January 16, 2009 It's hard to convince clients that a huge refund is not smart. All they know is that their neighbor got a big refund and they want one too. The current Turbotax ad depicting our founding fathers reinforces that idea. taxbilly Quote Link to comment Share on other sites More sharing options...
Julie Posted January 17, 2009 Report Share Posted January 17, 2009 My clients are calling and asking for reassurance: "It isn't the big one, is it?" "No, relax, it's the little one." "Whew!" Quote Link to comment Share on other sites More sharing options...
ed_accountant Posted January 17, 2009 Report Share Posted January 17, 2009 I am not surprised.. Quote Link to comment Share on other sites More sharing options...
David1980 Posted January 18, 2009 Report Share Posted January 18, 2009 Apply it to 2009 taxes & adjust withholding to compensate IMO. Who knows when they'll get the refund, this way they get the credit for it towards 2009 and can have less withheld over the year. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 18, 2009 Report Share Posted January 18, 2009 NY had money problems a few years back and delayed refunds until 1 April when their fiscal year began. Some NYer can jump in and correct the details, but my commuter clients were not happy. A CT resident who commutes to NY to work can get over-withheld in NY and owe CT. So, those that got their information together to file fast expecting that big NY refund in hand before they had to write out a check to pay CT were not happy campers that year. Quote Link to comment Share on other sites More sharing options...
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