Analyst: Higher California income tax refunds raise concerns

SacBee: Capitol Alert ^ | 3/8/11 | Kevin Yamamura

[SmithL]

With tax filing season under way, Californians last month received significantly more in state income tax refunds than expected, curtailing previous enthusiasm for strong revenues.

The nonpartisan Legislative Analyst's Office reported that income tax refunds were 30 percent above the state Department of Finance's estimate for February, normally the third most active refund month of the year after March and April.

The reason for concern? As part of the 2009-10 budget solution, lawmakers and Gov. Arnold Schwarzenegger increased income tax withholding. It was an accounting maneuver that gave the state a one-year boost in revenues, with the state repaying the money to taxpayers in income tax refunds. . . .

[SmithL]

Smoke & Mirrors won't balance a budget? Who knew?

Besides me, I mean.

[olivia3boys]

Well, those of us who owe CA thousands haven’t filed yet. We wait til the last minute. My money is coming :(

[youngidiot]

I too wrote a check, though not to California. Wanted to get it out of the way. Ouch! Funny how much “free” stuff can cost some of us.

[Tulane]

For some ugly reason, I really enjoy watching the socialist paradise of California shatter before all the world. And with the pubbies in charge of the house, no more federal bailouts to places like Sacramento.

I love the smell of government IOUs in the morning.

[Parley Baer]

I won’t be filing until the end of the month. I should be getting some money back unless the state thinks it is theirs the redistribute.

[Cementjungle]

Simple. Thet can start witholding now for the 2012-2016 tax years. More interest-free micro-loans from the residents of CA.

[E. Pluribus Unum]

There are always personal bank accounts to be attached.

Anybody who has any unspent money obviously doesn't need it, and should be ashamed of themselves for hoarding it.

[glorgau]

California is paying actual cash, not IOUs?

[Gaffer]

Honestly? I'd write them a letter and ask if I could set up a payment plan. Move your money out of state, transfer your home to your kids - whatever you could do....then tell them all you can afford is $50/week....

A government that treats its citizens like citizens deserves respect and consideration. One that does not, simply does not. Starve them.

[RFEngineer]

California next will have the legislature pass the Ferengi Rules of Acquisition into law to help their budget situation.

Rule #1: “Once you have their money - never give it back”

[wac3rd]

Meanwhile, Millie Johnson-Jefferson, retired Oakland city employee, a 25-year Assistant to the Deputy Director of the Omnibudsperson Discrimination Indignant Immigrant Affirmative Action Native American Transgendered Homosexual Carbon Credit Victim Scholarship Board, is now at Wells Fargo, depositing her $10,000 per month pension payment check from CALPERS on her way to the zero-deductable doctor’s appointment at Kaiser.

It’s gooooood to be a government worker.

[TYVets]

California is paying actual cash, not IOUs?

People that over with hold in many cases use that refund like a savings account.

They want their money back. An IOU will not pay for a vacation or a new TV.

[fifedom]

A word to the wise: if you have a refund coming from the CA deadbeats, file your taxes ASAP. Preferably electronically.

In past years, CA has paid off refunds in vouchers when they are "short" at the end of the fiscal year or have not passed a budget. Who knows what kind of hissy fit the Rats will throw if they get their special election and the voters turn down the tax increases.

[Bean Counter]

I remember when they did that and that fact just faded into the background noise until now.

Wait till people get an IOU instead of a refund....

[Mariner]

"For some ugly reason, I really enjoy watching the socialist paradise of California shatter before all the world."

Actually we're far from "shattered".

Most of us middle class are living quite well, thank you. It's the government and it's dependents that are in trouble...and the REASON they are in trouble is because we taxpayers Just Said No.

It's that simple. And, it's driving the left bat sh!t nuts. They keep demanding the left politicians FIND A WAY to increase revenue...and the taxpayers Just Said No.

Not even their dim governor fresh out of the way-back machine is willing to move forward on a tax increase unless it's approved by referendum.

Good on the GOP for not even allowing it to get on the ballot, much less pass.

You think the left is squealing now in CA...think the Unions are making a stink across the country...wait until governor Moonbeam announces that since he can't get his tax increase on the ballot the cuts THIS YEAR will have to be $28bil instead of $12bil.

33% of the budget...all in one cut all in the same year.

LA and Oakland will burn this summer. The rest of the state will be just fine.

[Neidermeyer]

Send them an IOU drawn in crayon...

[dpwiener]

A word to the wise: if you have a refund coming from the CA deadbeats, file your taxes ASAP. Preferably electronically. In past years, CA has paid off refunds in vouchers when they are "short" at the end of the fiscal year or have not passed a budget.

I haven't done my taxes yet, so I don't know whether I'll be getting a refund or be on the hook for some additional California taxes. But if it turns out to be a refund, and if I'm at all worried about when the state will pay it back, I have a simple solution:

I indicate on my tax return that my refund should be applied to my 2011 taxes. Then I drastically increase my state withholding allowances to the point that state tax withholding in my paycheck drops to zero. After several weeks, when the extra take-home pay I've been receiving is equal to my refund, I return my withholding to the normal level. And presto, I've effectively received my refund, often faster than the six to eight weeks I'd have to wait even in "normal" times.

[The Antiyuppie]

Well, that was “unexpected”...