CA tax refund

[zetta]

The good news is we're getting a substantial CA state tax refund. Anybody know whether CA is likely to pull the same stunt as last year, where they issued IOU's instead of refunds? I could apply the refund to next year's taxes, but am not sure I want to give the state an interest free loan if I don't have to...

[Slandgie]

Take the money and RUN!!! I can't imagine living in CA. I thought Ohio was bad........

[swanson719]

If I was living in CA, I would pay zero state taxes if possible. Pay the taxes to your savings account. Then when taxes are due, pay the amount due. I'd rather pay a little in penalty if there is any than get robbed blind.

[MonkeyMama]

I think they issued IOUS earlier last year (I filed Jan. 31 or so, and barely got my refund before IOUs - last year).

There is no doubt that CA will issue IOUs again this year (my opinion anyway). BUT, since I haven't heard anything about it yet, I do think you have some time. Can you file now?

[zetta]

I'm still waiting on one 1099-INT. Then one final double check of all the inputs and I'll be ready to file.

[MonkeyMama]

They gave fair warning on IOUs last year - just keep an eye on the news when you file. If they are issuing IOUs, just apply it to next year. IF no word by then, snag the refund.

[markusk]

I'm still waiting on one 1099-INT. Then one final double check of all the inputs and I'll be ready to file.

A quick side question (sorry if I am hijacking the thread). Is there a minimum amount above which a 1099-INT is sent? In other words, if my interest income is below $10 from a bank, will that bank send me a 1099-INT?

[MonkeyMama]

The problem is that the State Assembly has failed to pass a budget. The State Controller is barred by law from cutting most checks without budgetary authority.The basic problem isn't caused by illegal aliens so much as it is by CA voters passing ballot initiatives that restrict the State's ability to raise taxes and then pass others that increase spending.

This is the thing. People are UPSET. Rightly so. But they are the ones that pass every dang high cost bill that comes along. We just voted to spend a bajillion dollars on a high speed rail system. HELLO!!!!!!!

I don't think I have ever voted YES on any bond. Because I could never figure out how they could be paid back. Most of the voters are perfectly happy to mortgage their futures. Money apparently grows on trees - let the legislature pull a rabbit out of their hat.

[Joan.of.the.Arch]

How long did it take California to make good on the IOUs last year?

[MonkeyMama]

How long did it take California to make good on the IOUs last year?

I am not sure. Around 6 months?

[wnlbutterfly]

Our state pulled this stunt last year. It was the first time in forever that I was getting a refund. Kansas doesn't withhold enough during the year. Anyway as soon as I found out it was being delayed I walked into my workplace and changed my W-4 (I was having extra withheld for KS). And we are back to owing them money which they will get on April 15th.

They can't play that game if they don't have your money!

[SmarterSpend]

I can almost guarantee they won't have enough money to pay back taxes and will issue IOU's. However, I feel the situation is better this year than last, at the expense of education.

The politicians in Sacramento haven't been able to get anything right!

[banditfist]

The problem is that the State Assembly has failed to pass a budget. The State Controller is barred by law from cutting most checks without budgetary authority.The basic problem isn't caused by illegal aliens so much as it is by CA voters passing ballot initiatives that restrict the State's ability to raise taxes and then pass others that increase spending.

There is only one flaw with this: You overpaid taxes. That is YOUR money that they should not have. There is no approval that anyone should need to get their property back.

California is screwed as a state. Illinois might be the next worst off. Using bonds to pay for current expenditures only kicks the can down the road. They are still not addressing what the problems really are and living within their means.

[BadSaver]

I'm a pretty avid news reader and haven't seen a mention of IOUs. I think it won't happen this year. California has been issuing bonds to raise money.

They have implemented a few other tricks to borrow money from us. Accelerated estimated tax payments and additional payroll deductions.