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States Delaying Tax Refund Checks
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Less than two weeks ago, USA Today ran story about how states were going to hold tax refunds for months. Barely a week later, New York announced that it has started delaying income tax refund checks, estimating that delaying refunds until April 1st will “save” the state about $500 million. New York joins states like Hawaii, where some residents won’t get refunds until August, and California, where residents are starting to get IOUs instead of refund checks.
We hope that state financial issues won’t extend until next year but if you want to be prepared (and they don’t pass laws preventing this), here are two things you can do to avoid this in 2011.
Adjust Withholding
If you owe taxes, this delay doesn’t affect you. If you are due a small refund, then this delay is inconvenient but it’s not a big deal. The key then is to adjust your withholding so that you have a small tax refund or a tax bill, that way you don’t really care if there is a delay in refund payments! Here are instructions on how to adjust your tax withholding but do this with care as you don’t want to owe too much. If you owe too much, you may have to pay penalties and interest.
File Early
If you filed in February or early March, you might have gotten your return in before New York State decided to delay refund payments. If you were due a refund, this is yet another reason why you should file early! You get your own money back faster, you get to earn interest on that refund (even though savings account rates have been low lately), and now you might avoid refund delays too!
While it stinks to have your refund delayed, it does spur on better financial behavior which is a bit like seeing a silver lining in a storm cloud.
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I sure hope we’re not affected, though it’s still not clear if I’ll owe or get a refund from the state.
Well since I am sending in the state return via mail as opposed to my fed e-file. I am anticipating a longer wait for that anyways.
I always see the “adjust withholding” comment, but when you’re young and changing jobs, or getting married, or having kids, or moving, it’s a lot harder to get it right, and most calculators out there are not all that helpful.
I was surprised that I received my refund about 2 days after I filed with my state.
You’re right, it does get tricky but if you want access to your cash then you’ll have to do a little math.
In California, I received my refund in 5 business days this year (e-file, direct deposit, hit my books last Friday to be exact). Last year, it took a significant amount of time. I was pretty shocked seeing as how the state is so cash poor. I typically get my federal refund much quicker, but am still waiting on it….
I also got my California state refund very quickly this year. We filed at the beginning of February. So glad to get a check and not an IOU!
Another Californian here: I efiled our tax returns in mid February and both state and Fed deposits hit our account within a week. This year seemed even faster than usual. Strange.
you’ve got to love the system, if you are late paying the government, they assess penalties and interest.
they are late paying you? eh get over it, you’ll get your money some day
LOL… Sums up the US government!
That’s what I was going to say. Pretty unbelievable.
I guess we shold start making collection calls stating that the phone call may be recorded and this is an attempt to collect a debt. What is the interest and penelty amount anyway. They should be charged if refunds are received after April 15. That’s the rule isn’t it. lol. We can only hope for justice.
I filed my New York taxes on 2/16, and they’re still holding my refund until 4/1. New York law requires them to pay interest on refunds aren’t paid within 45 days of filing; it’s my suspicion that they are withholding refunds for any returns submitted within 44 days of 4/1.
I’m in Maryland and I got my check almost immediately after I filed. It’s nice to receive the money, but nothing that I would ever rely on receiving in a certain period of time.
My withholding was just about perfect this year – I got maybe $10 in refund. So it wouldn’t really matter if I got it now or in August, but I can see this kind of policy having a big impact on people who get a big refund that they can use.
I’m in New York and e-filed on 2/25. Got the federal return in about 1.5-2 weeks. Still waiting on the state return.
Unfortunately I’m also unemployed but a recent grad so ineligible for benefits. I’ve been living off emergency savings since August, and also had my car die and needed a new one to get to interviews in September. So yea, I’d like my money ASAP because my savings are almost gone and that couple hundred dollars means a lot more to me than it does to NY in trying to balance their budget.
crap. I still have to file and am due 5 months of city tax they took even though i did not live in the city. So i should bank on nyc and ny state refunds in december?
I was afraid that my IL tax refund would be delayed, but it showed up right about the same time as the Federal one. I filed early just in case the state decided it was too broke to issue refunds.
Another thing you can do is to owe a little bit. Adjust the holding far enough so you owe some, but not too much.
Just make sure you remember and plan ahead of time that you have taxes to pay
The way a lot of people talk this time of year, you’d think the gov’t was giving everyone free money!
In Washington there is no income tax (they just tax everything else more). Seeing this almost makes me glad i will not have this problem. But then again; i filed my return at the end January and got my refund deposit at the start of February. Makes all these tax posts almost annoying.
Same here, except in Florida. No income tax, just taxed to do anything else except breath, and then it depends on where you are doing it.
Just filed my state taxes on Sunday (March 21st). Just got my refund from them today (March 24th). Looks like filers in MA are in the clear on this one.
Yup, MA was actually pretty cool with their efile. Didn’t have to pay a dime to do it since I did it on their website. Same thing with the free turbo tax that I did with the federal efile.
Cali is allowed to issue an IOU? I know they are in the red but damn….
I’m from California and filed my tax return in late January.. i received my refund via e-file for Federal but filed my State refund thru regular mail. Big mistake. I have not received anything to date as I am due approx $1,000 from the state of CA and have been given the run-arounds by the phone #s listed online and thru my tax guy. Is there anything I can do here? thanks, Jose
I also sent my refunds out the first week in Feb. I got the federal, but have yet to get my state. Do you know a number we can call to demand our money????
I’m from the great state of corrupted Illinois. I did my own taxes via H&R Block at Home on the last week of January, 2010. I filed everything correctly, then mail the forms. 2 weeks later I received my federal income tax return using direct deposit, but I have yet to receive my Illinois state tax refund as of 04/01/2010. I went on-line to see what was happening. The only response I got was that they had received the form, and that it would take about a week for them to deposit it to my bank account. Well; this was about a month ago and counting. I tried calling, but only to get a busy signal. I do agree, that there should be a penalty charged to the state when they are late with everybody’s tax refund.
Same boat, Sent it in early and as of today, april 21, I have not recieved my refund.
I filed my taxes via snail mail in mid-February. For the past month, the IL Dep’t of Revenue’s website has been telling me the same thing:
“Display Result
Your return has been received. However a date for your refund has not been determined. If you filed electronically and requested direct deposit you should receive your refund in about one week. If you mailed your return, please allow 12 weeks from when you mailed your return for us to complete processing.”
Mid-Feb until today is just over 14 weeks. And they still haven’t set a date for my refund. To say the least, I’m peeved. Mostly because they aren’t addressing the issue publicly. You’d think there would be more of a public uproar about this.
Further research into Illinois DOR’s website found this FAQ (http://idor.custhelp.com/app/answers/detail/a_id/18/session/L3NpZC9qYTJBNVkqag==:
“How long does it take to get my individual income tax refund?
If you file your return electronically and have your refund directly deposited into your checking or savings account, you will generally receive your refund in about a week. If you file a paper return, you should allow 12 to 15 weeks for your refund.
To check the status of your refund, you may visit our automated Income Tax Refund Status Inquiry application. Please note that the refund inquiry application only allows you to check on the current year’s refund status. To inquire about a prior year’s refund status, you may either call us at 1 800-732-8866, or you may email us by using the “Send an Email ” tab at the top of this screen.
Answer ID 18
Categories Individual Income Tax
Electronic Filing
Date Created 07/29/2005 10:55 AM
Date Updated 03/30/2010 03:17 PM ”
So, now I guess it’s 12-15 weeks. They also had this gem FAQ on what to do if you don’t receive your return (https://idor.custhelp.com/app/answers/detail/a_id/43/related/1):
“What should I do if I have not received my individual income tax refund check, and according to your web site it has been more than 10 days since you mailed it?
If it has been more than 10 days since your refund check has been mailed, please call the Comptroller’s Office for assistance at 1 800-877-8078.
Answer ID 43
Categories Individual Income Tax
Date Created 07/29/2005 11:53 AM
Date Updated 11/05/2009 08:43 AM “
They have now changed the language again to note 15 weeks being normal… definitely just trying to hold onto the money as long as possible.
“How long does it take to get my individual income tax refund?
If you file your return electronically and have your refund directly deposited into your checking or savings account, you will generally receive your refund in about a week. If you file a paper return, you should allow up to 15 weeks for your refund.
To check the status of your refund, you may visit our automated Income Tax Refund Status Inquiry application. Please note that the refund inquiry application only allows you to check on the current year’s refund status. To inquire about a prior year’s refund status, you may either call us at 1 800-732-8866, or you may email us by using the “Send an Email ” tab at the top of this screen.
Answer ID 18
Categories Individual Income Tax
Electronic Filing
Date Created 07/29/2005 10:55 AM
Date Updated 06/03/2010 08:29 AM”
The poor suffer again. What else is new.
I swear my state is getting more messed up by the moment…
Filed CA return electronically on 5 Feb. To date no refund. Federal paid within 15 days of filing. Nothing on CA Franchise Tax Site about delays in payment.
This is ridiculous! I mailed early Feb (because they denied filing electronically). Their website says allow 12 weeks….I have and then some. Still no check! The kicker is I live in WI and work in IL and paid all year to IL when I wasn’t even suppose to be. So IL has had my money for nearly 18 months now and should have never had it in the first place.
i have one even better. I accidentally sent my IRS payment of nearly 1000.00 to Illinois State along with the Illinois state check and Illionis cashed both. When I asked for a refund of a check that never should have been cashed (or forwarded to the fed govt), they told me they have no idea when I’ll get the money back. This is now mid-July.
I filed my TX return 4/5/10 received a 4464 C letter from the IRS dated 4/10 indicating they will hold my refund and review my return.
If I did not received another letter form the IRS to call them in 45 business days. I called the IRS after the 45 days and they told me they don’t see a reason why I have not received my refund. They put a request in their system to check on the status and someone from the IRS will call me back. I also was in formed if I don’t hear from them in 30 business days to call them back. So, when August 2nd comes arround…you bet I will call them again and I’m sure I get another BS awnser to call them beck in 30 business days. I’m sure if I would owe the IRS that they want their money right away…with interest. Now I need my refund…I should charge the IRS 30% interst for ech month they are late. No wonder why so many people are fed up with them.
mailed my IL return on April 15, it’s been over 15 weeks, still no refund. When I use their online Income Tax Refund Status Inquiry, I keep getting the message (even today, in August!) “Your return has been received. However a date for your refund has not been determined. If you filed electronically and requested direct deposit you should receive your refund in about one week. If you mailed your return, please allow as long as 15 weeks from when you mailed your return for us to complete processing.” Does anyone have a suggestion of what to do?
I filed my Il return in February, in May I received a letter saying they were missing something. I mailed it back the same day with a copy of the document they had lost. It is now 120 days later and when I called they said the time has changed to 150 days. I’m sure they are just playing with tax payers money and there is nothing you can do to speed up the process.
I’m owed over $7000 by the state of CA. Mailed my return on April 15, and as of August 20, have seen no refund. When I check the CA Franchise Tax Board website, I’m told that it’s still being processed and given a phone number to call. When I called, I was told to call back on Sept. 1st. I was assured that I’d be paid interest at a rate of 4% beginning 45 days after April 15. My question is, if I’m issued an IOU, what happens with the interest? If I don’t get arefund or IOU by April 15, 2011 and apply the refund to my 2010 CA taxes, what happens to the interest? BTW, due to several K-1s, it’s impossible to know what my income is going to be until the last minute, and I therefore can’t simply adjust my withholding to avoid being over-withheld. If I’m under-withheld, there’s hell to pay in interest, penalties, etc.
I filed my CO tax return ELECTRONICALLY in JANUARY, and I have still yet to receive my refund. This is ridiculous. The website for the tax office says my tax return is still being processed and they told me the same over the phone and could not give me a time frame for when it would be done.
I efiled in jan and Its march 16th and I still didnt get my state refund check i dont know whats the hold up but they said 60 days its past 60 days and nothing new
I’m in California, filed February 1, 2011, and still have not received my state refund. I got the Federal refund within a week. It’s interesting that other people in California on this board go them quickly. I tried checking my refund status online, and the system wouldn’t let me and told me to call. I tried calling, and they said call volumes are too high and call back. They do not put you on hold, they just kick you off, and every time I try to call back, it does the same thing. It’s like being in he**. There’s no way to get ahold of them. I have a confirmation number, so I know the filing went through.
We filed our federal and ny state taxes on 1/20/2011 and we got federal back no problem.. NY is still holding ours saying it needs additional review.. but that it was only 60 days and its over that now.. we got an update and the state had nothing to say except that we will just have to wait!! This is unacceptable in my book because if you own the the government money in the military they are quick to take it but damn when they own you.. its like pulling teeth… grrrrr
Received federal return within a week; it has been a month now and am still waiting for IL to find some money to pay me back! Sheesh – perhaps they’ll give themselves another pay raise for a job well done.
Yeah, the wait is even longer than last year. Last year it took 2 months and a week. I e-filed this year on Jan.27 and still no check. I called the lady checked on it and said well its not finished processing, give it a little more time. She said they are back logged. Yeah right. This in Illinois. Don’t think about it and it may show up.
I filed in February via mail. Received the Federal refund check in a month, but no IL check as of today. My boyfriend received his IL check the same day as the federal one. I don’t know why the hell mine is delayed! We sent our taxes in on the same day.
I filed on april14th got my federal on the 22nd its now may22nd didn’t get my ny yet why is that
I FILED MY TAX APRIL 28 AND NOW ISJULY 3 DID NOT GET MY MONEY.
Add Illinois to the list. I filed electronically
April 10th and have not received my refund
as of July 08
It sucks to have to wait this long. I have filed back in February via mail and they received it in the beginning of March. It is almost August and I have yet to receive my returns.
Well, California is holding tax returns again this year. Filed in March.. It’s August 23rd.. still haven’t received tax return. I keep getting empty promises. Any way to ‘force their hand’?
I filed on February 9th my federal return came the 22nd of February. I still have yet to received my Illinois state refund. It is about to be September and I had gotten a letter back in February stating the amount the state would be sending me shortly. I would like to know their definition of shortly six months a year maybe two years. Is there a time limit to how long they can make you wait after sending approval. If the state can not return the money that is owed they should not be taking it out. The so called improvements the state has made with the borrowed money proves to be more of a hassle to residents not to mention a corrupt former governor that was jailed for stealing money from tax payers for his own personal use I’m sure he has something to do with this. It’s still no excuse.
Im wandering i did my taxes on turbo tax i filed on august 15 and they said i should be issued a check on the 2nd of september…im thinkin maybe it might come that day or not..idk does anybody know ..
My bf filled with Jackson Hewitt and paid for e-file in the great state of Kentucky. We reviewed his state but not his federal of 3800.00 here it is weeks after and still nothing if we don’t file taxes we get fined and lose things, but if the federal government don’t pay we can’t do a thing about it man our justice system sucks.