Spidell today reported that California taxpayers who file by January 23rd and request a refund direct deposited into their bank accounts would likely get their refunds. Anyone who files after that date will likely have their refunds on hold.
Unfortunately, very few individuals will be able to meet that deadline. Most people are still waiting to receive their 1099s and W-2s; with the deadline for investment companies to issue the 1099s pushed back to mid-February most of us are out of luck.
One client asked me when the state is required to issue the refunds. California has until April 15th to mail (or direct deposit) the refunds. After that date, California must pay interest on the refunds. If registered warrants are issued interest may also be due on the refunds—especially if the warrants aren’t made good until after April 15th.
I didn’t report anything on the budget front last week because nothing has changed. Neither the Democrats nor the Republicans have changed their positions by one iota so there’s nothing to report.
Interesting that interest isn’t due for a few months. I guess it was nice of them to pay early in past years, then. I’ve suggested elsewhere that they pay the refunds back in state bonds instead of cash. Inconvenient, but a good way to both defer the actual cash payment and emphasize to taxpayers the state’s financial situation.