Voros: California tax refunds not a priority

Contra Costa Times ^ | 3/3/9 | Drew Voros, business editor

[SmithL]

The economic earthquake rocking the country is allowing plenty of dirty little secrets to seep out in a way that a robust economy would not have.

There's Bernie Madoff (as in ``Bernie made off'' with my money); billion-dollar bonuses for bailed-out bankers racking up billions in losses (Merrill(ly) Lynch); Northern Trust(me) of Chicago using some of its $1.5 billion in bailout money for PGA golf tournaments and Sheryl Crow; well, you get the idea, and that's just the low-hanging fruit.

[Amerigomag]

There is an easy answer. Stop paying state income tax withholding until the last week in August. Keep it in your account working for you.

[Retired Greyhound]

Well then paying my taxes will not be a priority.

[ninergold3]

I'm sure the people of CA who are owed refunds are excited to hear this. I guess that those who owe the state $$ still have to have it in by April 15th.

I love it when there are 2 sets of rules: Theirs and ours. Do as I say, not as I do. . .

I thank God every day that my family was able to move out of CA three years ago.

[GeronL]

I am sure those who depend on the refunds will be happy to hear that they are ‘investing’ in government

[GOPJ]

Is this the reason so many are getting their taxes done early? Will the IRS do the same?

[Myrddin]

File your 2008 taxes and state the "refund" is applied to your 2009 liability. Don't pay a penny of withholding until the obligation on your gross income matches the amount you were owed in the refund.

[ronnie raygun]

Change your deductions so they have as little as possible of your money without you owing them, and pay your taxes on the last minute of the last hour of the last day APRIL 15TH.
F THEM! Look what we have elected to control our money, children with a checkbook.

[yankeedame]

Drilling for off-shore oil is, of course, out of the question.

[Myrddin]

Is this the reason so many are getting their taxes done early? Will the IRS do the same?

My federal refund has already been received. The state of Idaho pretended not to have "all employer data" on hand, and put me off by demanding the paper copy of my W2's. I'm confident that those landed in Boise today. I'm irked that I paid $19.95 to eFile to Idaho, then had them pull that stunt to delay paying the refund.

I'm strictly retiring debt with the refunds. No spending of the "windfall". This is probably the last year for a long time that I'll see any kind of decent refund.

[calcowgirl]

I’ve been waiting (and waiting) for over 6 months for some unclaimed property (cash) to be returned to me. After 6 months, I got a letter from Chiang saying they couldn’t pay it until the budget was settled. As of today, below is what their website says.

I was under the (misconceived) notion that unclaimed property went to the State to “protect” the citizens from outside institutions spending the idle assets of their customers. The State has proved to be the biggest crooks of them all. They demand that financial institutions hand over the money per a strict schedule or be subject to payment penalties and 12% interest rates. The total number of assets held for “protection” of the citizen is in the area of $5 Billion. Instead of protecting those assets, Chiang et al have used the dollars to fund operations.

---

UNCLAIMED PROPERTY CLAIM STATUS

NOTICE

We regret to inform you that beginning February 1, 2009, most payments for unclaimed property will be delayed for 30 days due to the State’s cash shortage crisis. Claims involving securities or safe deposit box contents, which have not yet been sold as required by law, will not be affected by this delay.

We will continue to process all claims so that we can resume payments as soon as the Controller determines there is cash available.

[abb]

One of the most important studies of withholding that I have ever seen. A long read, but worth it.

http://www.cato.org/pubs/journal/cj14n3-1.html
EVOLUTION OF FEDERAL INCOME TAX WITHHOLDING: THE MACHINERY OF INSTITUTIONAL CHANGE

Charlotte Twight

[SteamShovel]

California tax refunds not a priority

They will pay it back later.....

.....with interest and penalties

Am I right? / sarc

[tweakDU]

“I will gladly pay you Tuesday for a hamburger today”

Wimpy

[tweakDU]

Probably. But it IS the reason that so many, like me, are leaving this welfare state in droves.

[sheana]

Change your deductions so they have as little as possible of your money without you owing them, and pay your taxes on the last minute of the last hour of the last day APRIL 15TH.

I have been doing that for many, many years. I never saw any reason to give the state or feds interest free ‘loans’. And, on April 15th when I write that check and send it in......F$%@ you Thieves! is written in the memo section. They still cash it. shrug

[GOPJ]

Probably. But it IS the reason that so many, like me, are leaving this welfare state in droves.

You might just be moving to a different deck on the Titanic, but it'll give you more time...

[dpwiener]

There is an easy answer. Stop paying state income tax withholding until the last week in August. Keep it in your account working for you.

I recently adjusted my state withholding down to zero. Near the end of the year I'll estimate my 2009 taxes and increase my withholding drastically for a few weeks to come out even for the year. That way there won't be any under-withholding penalty next year.

Meanwhile, within the next several weeks I'll have retrieved my (small) missing refund. The state of California's IOU will become my payment towards next year's taxes: I'll effectively be endorsing their IOU back to them.