The Truth about Tax Refunds
As we are moving into March of the tax filing season, it is important to know some states like Louisiana are delaying tax refunds. Their excuse. They have a new Federal Tax Fraud check system in place.
Sounds like the weather excuse retailers use for not meeting same store sales.
Tax revenue in several states appear to down so far for the fiscal year according to news reports which means that tax refunds are being delayed. Louisiana in point. Just to let you know, I am not picking on Louisiana; but, just pointing out the excuse they are using. I will tell you that the tax revenue in Louisiana hasn’t bounced back to 2008 pre-recession levels.
According to the latest news regarding Louisiana, your state income tax refund may be delayed by up to 16 weeks. So if you’re a Louisiana tax payer, I hope you were not counting on your tax refund anytime soon. There are ways to avoid large tax refunds and get your tax refund money back sooner.
If you are expecting a large refund, you are having too much withheld. Don’t treat the Federal or State as a saving account for your money. What if the change the way they did tax refunds. I won’t give examples because I am afraid they would propose them. But what if.
Determine your exemptions. This will depend if you are married, single, have children. Tax withholding tables are based on income and number of dependents.
Determine changes in your income. If your income changes, your tax changes.
Determine any deductions. Do you have charitable contributions, medical expenses, miscellaneous deductions, or college expenses. There all affect your taxes.
Determine your marital status. Did your marital status change for the year. If you get married on December 31 then you were married for the entire year. The same if true with divorce. If your divorce is final on December 31, then you were single for the entire year.
All these things listed above affect your taxable income and taxes. Plan your taxes. You plan your life and taxes are a part of your life. Most of all, remember that the Federal and State governments are not your personal savings account.
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- CIRCULAR 230 DISCLOSURE "We are required by IRS Circular 230 to inform you that the advice contained herein (including all attachments) was not intended or written to be used for the purpose of avoiding any penalties that may be imposed under Federal tax law and cannot be used by you or any other taxpayer for the purpose of avoiding such penalties."
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