Fiscal cliff could put your tax refund on hold

[techs]

http://money.cnn.com/2012/12/28/news/economy/tax-refund/

Fiscal cliff could put your tax refund on hold

Hoping to get your tax refund soon? Don't hold your breath.

Congressional dithering over a fiscal cliff fix could force the Internal Revenue Service to delay the start of the filing season. So those expecting to file their returns in mid-January, when the agency usually begins accepting them, may have to wait several weeks.

If Congress doesn't approve a patch for the alternative minimum tax in the next few days, then up to 100 million taxpayers will not be able to file their returns -- or collect refunds, if owed -- until late March, said Steven Miller, the agency's acting commissioner. (The AMT itself would hit nearly 30 million filers with higher tax bills, and returns of the others would be held up while the IRS reprograms its systems.)



Damn. This is the first year in the last 10 I was all ready to head down to the accountants the first week in January. I had a bad year and am expecting a decent return.

Anyways, I posted this fyi.


Clearly a P&N topic -Admin DrPizza

 

[CycloWizard]

This is absurd. Changes to the tax code that affect 2012 income/deductions but are not decided until after January 1 2012 are ex post facto.

 

[techs]

This is absurd. Changes to the tax code that affect 2012 income/deductions but are not decided until after January 1 2012 are ex post facto.

Thats actually an interesting point. However, would you also agree that holds if the changes reduce your tax?

 

[IronWing]

This is absurd. Changes to the tax code that affect 2012 income/deductions but are not decided until after January 1 2012 are ex post facto.

While it would be a rotten thing to do, there is nothing in the Constitution to prevent Congress from taxing prior year earnings. Congress' power to tax (and spend) is virtually unlimited other than to "throw the bums out".

 

[hdeck]

noooooooo

 

[DCal430]

This is absurd. Changes to the tax code that affect 2012 income/deductions but are not decided until after January 1 2012 are ex post facto.

The amt fix expired Jan 1 2012, not after. It isn't ex post facto at all.

 

[sonambulo]

If this happens I am going to start using Jarate in real life.

Goddamn.

 

[eits]

what tax refund?

 

[ControlD]

what tax refund?

That's exactly what I was thinking.

 

[episodic]

How would this effect filing your fasfa? That is usually based off of your tax return, and the earlier the better. . .

 

[TechBoyJK]

This is why (due to advice I got my freshman year in hs) I always setup my paychecks so that I'll either break even or owe at the end of the year. I'd rather get more money each paycheck and owe a little at the end than get smaller paychecks and hope I get some back.

 

[shortylickens]

Posting in the wrong forum could get you kicked in the balls.

 

[DCal430]

This is why (due to advice I got my freshman year in hs) I always setup my paychecks so that I'll either break even or owe at the end of the year. I'd rather get more money each paycheck and owe a little at the end than get smaller paychecks and hope I get some back.

Everyone filing is delayed, and you might find your self fined for underpayment of taxes.

 

[Red Squirrel]

This is why (due to advice I got my freshman year in hs) I always setup my paychecks so that I'll either break even or owe at the end of the year. I'd rather get more money each paycheck and owe a little at the end than get smaller paychecks and hope I get some back.

The danger with that is it does not take much to end up owing an absurd amount like 10+ grand and it's a complete guessing game till tax time comes. How are you going to come up with that on a whim? Probably end up having to use credit which will take most of the year to pay off if longer.

I rather do everything possible throughout the year to ensure I will get money back. I don't know how much I'll get back, but I at least have a general idea that I will get something back. Because I started working shifts this year I'm kinda nervous to know how that will play out. Some pays are big, some are small. My dad is a salesman and has fluctuating pays like that too and he always ends up with a huge chunk so I hope that happens to me, or at very least I hope I don't have to pay anything.

It's kinda like a game. If you end up owing at the end, you lost the game.

I rather have to wait to get money, then have to pay up right now.

 

[Jeff7]

When the debt ceiling "crisis" came up awhile back, what do you do? Cut spending and/or raise taxes? Nah. Just raise the limit.

That "fiscal cliff" we (Congress) created? Oh right, we created it. Let's just retroactively make it disappear, so that we don't have to actually do any of the things we said would happen.

They'll do something about it that will ultimately result in them doing nothing, which is all they're really good at doing.

 

[shabby]

When the debt ceiling "crisis" came up awhile back, what do you do? Cut spending and/or raise taxes? Nah. Just raise the limit.

That "fiscal cliff" we (Congress) created? Oh right, we created it. Let's just retroactively make it disappear, so that we don't have to actually do any of the things we said would happen.

They'll do something about it that will ultimately result in them doing nothing, which is all they're really good at doing.

Congress loves seinfeld...

 

[Crono]

I could see the reaction of the masses if this happens:

They puttin' mah refund on hold!?!

Oh no they diin't!!!

 

[LTC8K6]

In November, California voters actually voted to have the income tax on "the rich" raised retroactively for 2012 and then 6 more years...

 

[Lemon law]

This is absurd. Changes to the tax code that affect 2012 income/deductions but are not decided until after January 1 2012 are ex post facto.

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Wrong again cycloignorant

I should know because my wife works as a tax professional.

The problem is and remains even the IRS has no idea of what tax year 2012 tax rates will be. Normally the IRS has everything in place by this time of year, and normally is prepared to begin processing tax returns by 1/20/2013. But already that date is already pushed back to 1/30/2013 or even later.

And the other problem becomes, many people who could normally expect a large tax refund may find instead they owe instead because tax rates are expected to increase at the bottom tax rate categories of famdamiles making under 50 G's some $1300 or more.

After that any guess is as good as mine. Meanwhile everyone relying on unemployment may lose their safety net. Meanwhile all these partisan gridlock games are certain to reduce our nations gross domestic product, and even with higher tax rates, we will collect less tax revenue.