Update: As of April 2009, the Franchise Tax Board has begun issuing refunds. California taxpayers can check their refund status at the FTB's refund status Web page.
The Franchise Tax Board of California is going to delaying the issuing of state income tax refunds by thirty days in an effort to prevent cash flow problems with the state's finances. In an email the FTB announced,
"Due to the state’s persistent cash and budget problems, the State Controller announced that he will have to delay refunds for 30 days starting February 1, 2009 for Personal Income Tax and Business Entity taxpayers."California usually takes about two to three weeks to process refunds for electronically filed tax returns, so adding an extra 30 days delay means that taxpayers will have to wait about six to seven weeks for their refunds.
Personally, whenever I have a refund, I prefer to have that refund applied toward next year's estimated tax. And this year might be a good time for others to consider doing this for their state or federal refunds. For me, this has the benefit of reducing my estimated tax payments for the rest of the year. But this year it might also help prevent further cash flow problems in the government.
More information:
- State Controller announces delay for tax refunds (Franchise Tax Board, includes FAQs)
- California may delay tax refunds amid budget impasse (Los Angeles Times)
- California tax refund delay will happen, state controller says (InsideBayArea.com)
- The Great California Fiscal Earthquake (Time Magazine)
This is beyond outrageous! We play by the rules and let them over-withhold money every paycheck, and now they can’t pay us now that it’s time to settle up? BS! http://malcontentist.com/2009/01/california-to-stop-issuing-tax-refunds
If CA owes you a refund, why not change your CA withholding to zero to compensate?
Since they have had my money for one year with out interest, I feel they should pay us interest and penalty as we would have to if our tax payments are late
I think our refund should be paid on time because we work hard throughout the year and pay our taxes on time, out of our paychecks. If some people owed taxes, the state would want their money right now, and if late with interest!!!! No questions asked!!!
I agree…if CA cant pay they should pay us INTEREST and be charge for LATE PAYMENT, like they would do us tax payers
California FTB owes me over $900 in refunds. I just changed my withholding for the state to show the maximum (9) deductions – the aren’t getting any more of my money until they pay me what they owe me.
I agree with all. Except the guy who wrote this.
Personally, whenever I have a refund, I prefer to have that refund applied toward next year’s estimated tax. And this year might be a good time for others to consider doing this for their state or federal refunds. For me, this has the benefit of reducing my estimated tax payments for the rest of the year. But this year it might also help prevent further cash flow problems in the government.
We paid and should get our refund. They are cutting services like teachers and all. Should cut the big pockets of the so called politcal speakers who aren’t complaining. Maybe cut there pay and see how they would react to what the teachers are going through. PURE BS POLITICS.
I dont understand why (in my case)a single,male adult,no kids(my choice)that makes around $17,000 yr before taxes,needs to pay ca $547.08..only to recieve $318.00 back in an i.o.u. Guess i was raised different.If you barrow something and brake,or loose it,you replace it with a new one.not an I.O.U. How much more can we be taxed?
where is my money i ork hard for it all yaer is time for them to pay me back is my money
The Author of this article has to be on crack–
“For me, this has the benefit of reducing my estimated tax payments for the rest of the year. But this year it might also help prevent further cash flow problems in the government. ” It seems to me the Democrats should have been CUTTING SPENDING instead of giving money to ILLEGAL ALIENS, UNIONS, and other wasteful programs–and have been putting money away for the rainy day we have NOW. As soon as I get my refund I am moving out of this WORKERS PARADISE to a state where they know how to balance the budget and not overspend and over Tax.–If more like me leave–who will be left to pay the taxes>>
I agree that it’s tough times for California, and the legislature isn’t helping any by delaying our budget. But I asked myself, what can I do to help, it is seems to me that by rolling over my refund towards next year’s estimated payments, the government is going to save a few bucks by not having to pay out my refund only to get it back a few weeks later as an estimated payment. I would do more if I could, but I’m not very optimistic that even my little action will do much to help the state.
Its about time that the tax payers start taking control since our state governor cant.
people are loosing jobs and he continues to create more job losses. his kids dont suffer because they attend private schools and the public ones are being hit. where is all the money that california collects every year? Lottery,taxes,ext.. if we owed them they would take our property to pay the debt. But they can dictate to the people when they will pay us our money. wake up california who ever voted this idiot in office, its real life not some movie you watch.
So, if I owe the State, income tax, can I send them an IOU for a month or so until I get the money, with no interest of course.
I agree with what everyones ones comment, how would the state assembly like if they had to go from paycheck to paycheck and not be able to go on their vacations or get that new designer suit. I think they are the ones who should get a pay cut and start pay the people what they owe us with intrest,since that is what they would do to us……
Yessssssssssssss….finally people with an opinion. I agree with everyone except the writer of the article. Is he joking?? Please, we work hard all year, and we are not Congressmen and women, who can just let their $150,000 tax bill sit at the IRS or State Tax Board office, until we decide to pay it…maybe when we get appointed to a position in the new administration??? The IRS would garnish our wages and embarrass us beyond belief. This is B.S., the state needs to budget better and have reserves for tax refunds and other programs like education because children of today are our future leaders and need the education to be competitive. What about those millions of people who are unemployed and have been laid off ??? But need their refunds?? Just to put food on the table??
Give us a BREAK!!!!! We are all work hard to improve our lives and the state where we live. By putting, a delay on state income tax refunds is showing us just how much you do not respect who we are. We are Mothers, Fathers, Sisters & Brothers, with everyday expenses. Your poor money management and lack of creating and sticking to a budget is not the taxpayers fault. Well, maybe it is, because we believed in you, our leaders to make a better today and tomorrow. The pension fund is bankrupt. Poor investment choices and poor leadership have lead to this state being unable to get the loans/bonds needed to run this state. Instead of tightening the belts of the government – we cut salaries of Teachers/Police/Firefighters and important public services. I would like to see the Governors/Mayors & leaders take a pay cut or better yet lose their salaries to pay for their poor decisions and overspending. Maybe being accountable for their mistakes by being required to use their own salary, we would see a balanced budget that was truly balanced. Budget shortfalls would become a thing of the past. Please realize that the people you are hurting by this delay are the people who truly cannot afford this delay. I know that whatever I write here will fall on deaf ears, but I hope that just 1 voice in the voices of thousands that someone will put the money back in the hands of the taxpayers who trusted in you.
I have been trying to see what the state controllers plans are for our cash flow problem? Its all lies, I believe thirty days, will turn into 45 days, than 60 days………….?????????? So the budget has been approved so show us the money!!!!!!!!!!!!!!!
We should cut spending to the prisoners, especially the murderers and rapists. Put them in worse conditions that the gen pop. It takes at least 40K/yr to keep one prisoner in California prison. We should start frying the worst bastards on death row, don’t you think that if we reduced the prison population on death row, so of these losers would think twice???? Appeals my booty!!!!
i want my fn return. have waited a month now and those bastards wont pay up. its bs that we get taxes cut out of every paycheck while they sit on it for a year. i say do away with the irs and raise the state tax
I’m just glad I moved out of California 6 months ago. I’m getting over 5K refund in texas and it’s scheduled to arrive on Friday. This CA crap is total bs. CA owes me over $1500 and I’m honestly doubting I’ll see it any time soon. I agree the 30 days will probably turn into 45, then 60, 90, etc. CA’s a mess. I left my whole family and all my friends (my whole life) because I couldn’t afford to live there anymore. I have 2 toddlers and a husband to feed and we just couldn’t afford to live there anymore. I miss my family but when I checked on the status of my CA refund this morning I told my husband “Thank God we left when we did”. I’d hate to see what next year will look like in CA.
I just called the FTB, was on hold for about 20 minutes and they said the state controllers office is not giving them a time frame as to when the refunds will be issued! It would be nice if they would just do as they say, update the website, honor the 30 day delay as they initinally said it would be and get the refund amounts to the people that have been waiting so the money can be put into economy…..there’s people out here that filed early for a reason…WE NEED THE MONEY WE ARE ENTITLED TO!!
I just want to say that this should be a good teaching tool to get people who use income taxes as “savings accounts” to stop doing this. Instead try breaking even each year and putting money aside in a “savings account” that not only gets some interest but you have the money in case of emergencies, not the state and federal governments. Learn to set money aside YOURSELF!!
Dave says:
I just want to say that this should be a good teaching tool to get people who use income taxes as “savings accounts” to stop doing this. Instead try breaking even each year and putting money aside in a “savings account” that not only gets some interest but you have the money in case of emergencies, not the state and federal governments. Learn to set money aside YOURSELF!!
Well, Dave, that doesn’t work for everyone. I am a single (divorced) male in a very high tax bracket. If I claim even one exemption, I end up owing thousands at the end of the year. So, instead, I have to claim zero and wait to get some of my money back. For divorced people that pay child support, there is not one tax break. I, over the child life of my son, paid hundreds of thousands of dollars in child support, yet never got a break of any kind as my ex-wife used my son for her exemption. I was penalized for not staying with someone I did not want to be with and now am penalized for not being with someone.
I don’t use the government as my “savings account”, as a matter of fact, I would prefer not to pay them at all. This is supposed to be taxation for representation. I still don’t see how I am being represented. I pay in taxes what some make in a year and see very little of that at the end of the year. So, to me, this is robbery. I am robbed all year long and now they add insult to it. Arnold has pushed through the budget and has given himself many accolades for it. Yet, now that he has done that, he completely sidesteps the issue of paying taxpayers what they owe.
It is unfortunate because there are a lot of people that say “Let’s revolt and stop paying taxes!” Yet when push comes to shove, they jump back in their home and hide behind the safety of their front door. Like they used to say in the 60’s, armchair liberals, but now they are armchair radicals. If everyone decided to stop paying their state taxes for a couple of months, trust me, there would be a big movement in the state to take care of the taxpayers.
OK, time is up! The state should add interest to the refunds. I’m quite confident they would charge interest earned. In good faith we have deductions taken from our earnings. If it turns out to be an overpayment, then PAY UP! I’ll BEEEE Baaack!
I’m not little, but I am sixty-seven years old and I really depended on that refund. I am one of those people who over withhold to get a big refund. I regret it now and won’t do that any more. I’m really afraid I won’t ever get my money, the way things are going, but I bet those welfare checks and food stamps are still arriving for the illegal aliens right on time.
I think that one thing has come of this, and that is, hopefully, that everyone can see now what the “trickle down economic” plan did for us. We had a republican as a president, and look what he did to the country…..spending billions on wastefull programs. And now, we have a republican as our governor, and look where california is. News Flash folks: Republican Economic theories, the traditional ones, don’t work anymore!!! The world and it’s economy have changed, and so goes the leadership!!! Please be thoughtful in the next election!!! Please make sure that the philosophy of the candidate you are choosing is the same as yours, and that it is one that will work for our futures!!!
By the way, california was headed to this place, regardless of how the rest of the country turned out. What angers me the most, is that our Governor knew that, even spoke about it several times, yet did nothing until 2 months before the budget needed to be balanced. Now, we are almost 9 full months past that point, and we still don’t have a budget. We all should be standing on podiums at the capital telling them that this is it, they had better fix it right this time!!!!!! AND GIVE US BACK OUR MONEY WE LEANT TO YOU ALL YEAR!!!!
“For me, this has the benefit of reducing my estimated tax payments for the rest of the year. But this year it might also help prevent further cash flow problems in the government.”
Idiot
vote for me to run california —1st campain promise–I will pay back what I owe—–ummm after my very expensive vactation?
leave california or raise your w-9 so the freaking state cant have your money—ohh wait if you owe them–well then go to jail or pay interest or penalities—hmmm do (not) unto others as they would do unto you–which means BEND OVER CALIFORNIANS but pay me first–vote for me –will pay what I owe–some day I promise Add a Comment
ok thats it quit crying– I am in charge here and I will pay out when I want to–ok—MAN bunch of cry babies—but please do not leave cali or raise your deducts on the W-9’s or I will be back for you—and remember you are in the coolest state in the USA–maybe you all should move to Alabama–man its just money?
I heard that there was a web site where you can check the status of your retirn and find out when it will be sent to you. Do you know what that web site is and the address?
You can check your California refund status at http://www.ftb.ca.gov/online/refund/index.asp
Here’s why I won’t apply my refund to next year’s taxes:
I can put the refund in an interest-bearing account. The government won’t pay me interest.
I just checked the status of my refund…instead of sending me my $1,200 bucks, the state decided to apply it to 2009 taxes. They basically co-opted my refund without my permission! When I called the 800 number to see what’s going on, the recording says they are too busy to help, please call back. With the 2,000 new state workers this year, you’d think they could answer the dang phone!
Suzanne, the FTB doesn’t apply refunds on a whim. You would have had to tell them to apply the refund towards your 2009 estimates on line 46 of Form 540. If you did not request this, then perhaps the state is applying your refund to pay towards a balance from a previous year? If neither of these is the case, then the FTB has made a mistake and you should ask them to correct it.
I’m glad the website to check your return isn’t working.
I just want my money
How outrageous! What did they do with all the money, that does not belong to them? There is no excuse and no justification for failing to pay back tax refunds in a timely manner. If CA has no money they should declare bankruptcy or issue bonds to raise the cash they already spent that did not belong to them.
True enough, california owes many taxpayers money and those in power have thrown taxpayers money into personal projects that help them be reelected. Finding a solution to this problem is simple; Stop electing those people that are causing the problems. Find out who they are and get rid of them…..
i received an iou back in july. i went to the bank to cash it. i held onto it for 2 months. bank said no but call gov agency. what is up. i want my money!!!!!!
You can redeem your warrant (iou) with the State Treasurer’s Office. See the information at: http://www.ftb.ca.gov/aboutFTB/newsroom/Registered_Warrants.shtml
So…. Franchise tax board without warning, garnishes my wages for an amout close to $4000. I was notified a week after they hit my paycheck with a $450 garnishment. I was told they never rceived my 2000 filing. 10 years with no notice and I am hit. SO…. I immediately file and it is determined that they actually OWE ME $1247! But guess what??? They dont have to pay because it is over 3 years. There is a statute of limitations that says they do not have to pay, but they can charge you. Its positively Criminal!!!
Gov. Patterson is threatening to withhold NYS taxes. How in the world is he going to win the hearts of the people of NY w/ this crap? I vote for him to resign quickly before mayhem spills in the streets of NY. God be with us!!!!!
Amazing how people think that the state of california would be able to keep track of all refunds credited to next year’s taxes. Amazing, this state is messed up – they can’t balance their own book, why would anyone trust them to keep track of refunds owed? Better to get your refund and bank it if only for the 1/2% you MIGHT GET as opposed to figthing the state to get them to remember that they owed you money for this year!!