Tax Refunds; Remember, It’s Not Your Money!

Is there a bigger indicator that the ship is sinking?  Maybe the unemployment rate over 20% in 8 counties in California is bigger? (Colusa: 27.4%, Imperial: 27.3%, Merced: 21.7%, Plumas: 22.3%, San Benito: 21.1%, Sutter: 21%, Trinity: 25.8%, Yuba: 20.4%)

States may hold onto tax refunds for months

Residents eager to get their state tax refunds may have a long wait this year: The recession has tied up cash and caused officials in half a dozen states to consider freezing refunds, in one case for as long as five months.

States from New York to Hawaii that have been hard-hit by the economic downturn say they have either delayed refunds or are considering doing so because of budget shortfalls.

“It’s an indicator of how bad it is,” says Scott Pattison, executive director of the National Association of State Budget Officers. “You know things are bad when you have to do that.”

New York, hit with a $9 billion deficit, may delay $500 million in refunds to keep the state from running out of cash, says Gov. David Paterson.

WHERE DOES YOUR MONEY GO? Enter your salary and see how tax rates have changed over time

Hawaii’s Department of Taxation says some residents may not see state income tax refunds until the end of August, The Honolulu Advertiser reported. It was part of a plan by Gov. Linda Lingle to deal with a revenue drop-off by pushing costs into the next fiscal period, which begins in July.

I did not have to worry about my tax refund this year.  The state of Hawaii raised our taxes significantly last APRIL 15TH, (how’s that for a bitchslap), and I got to pay into the slush fund again this year.