State I. O. U's

[bluehunter]

Can anyone explain what this plan is and how long will it be in affect that the governator has for our state taxes? I heard it was a plan in the making and was wondering about this.

[DarkShadow]

When my property taxes come, I'm gonna send them an I.O.U. too.

:Rolls Eyes:

[sansou]

State IOU's?

Oh, you mean the "I will gladly pay you tomorrow for a hamburger today" California state fiscal policy?

In other words, I have to timely pay my quarterly estimated state income taxes (or annual if you are employed by someone else), but the State's comptroller may unilaterally elect to hand me an IOU if I am due a tax refund. I wonder if I can use the IOU as a credit the next time I go to pay DMV fees, a speeding ticket, or property taxes. Hmmm....

$11.2 billion dollar deficit and growing, with a shrinking tax base heavily reliant on real estate values and corporate receipts, coupled with an increasingly unfavorable business climate for California corporations... maybe as a failing entity we can get some bailout cheese from Obama and think twice before we send movie stars to Sacramento?

Just thinkin' out loud...

[HBJapo]

Most amazingly all, the money the IOU is being issued for is MY money. It was taken out of MY check.

Bluehunter,

I have not seen the specifics of the IOU's. (I just Googled, again, for nada.) As a result, I have already filed my state, in hopes that I can beat the IOU plan, since the plan has not been well defined. The most I have seen is that you MIGHT receive an IOU. If you expect a refund, I would not take any chances and I suggest that you and all others do the same, file quickly.

Japo :Envious:

[DarkShadow]

...I suggest that you and all others do the same, file quickly.

Japo :Envious:

As Abraham Lincoln once said,

"Never do something today, that you can leave until April 17th."

[CraigH]

State IOU's?

In other words, I have to timely pay my quarterly estimated state income taxes (or annual if you are employed by someone else), but the State's comptroller may unilaterally elect to hand me an IOU if I am due a tax refund. I wonder if I can use the IOU as a credit the next time I go to pay DMV fees, a speeding ticket, or property taxes. Hmmm....


I don't know if it will go thru, but I read where the State is going to accelerate the quarterly estimated tax payments??? As in you used to be OK if you paid 25% in each quarter but they are now going to make everyone pay a higher percentage in the first and second quarters to get more cash up front.

[HBJapo]

Is everyone bent over at the appropriate angle?

Japo :Envious:

[fndaway66]

Forget the IOU's. I'll pay my back taxes after I become nominated for the "Secretary of the Treasury" position.

[HANG'IN ONE]

Have'nt seen my ankles in a long time!

[Granny Fish]

You all get money back from over paying State income tax? Why do you over pay? Just claim exempt for a few months and you should be even.:Wink:

[maxpowers]

Or you can always applied the refund toward next year tax and claim more exemptions...Hit the state hard this way if everyone elect to do this in lieu of accepting IOUs.

Mike

[HBJapo]

You all get money back from over paying State income tax? Why do you over pay? Just claim exempt for a few months and you should be even.:Wink:

GF,

When your payroll dept is inept, you have no choice....

And I'm a senior accountant..

Japo :Envious:

[Granny Fish]

GF,

When your payroll dept is inept, you have no choice....

And I'm a senior accountant..

Japo :Envious:

There is always a choice. :Razz:

[olfishergal]

correct...........I have used the exempt status many times and come out even.

[jim532]

The state has issued IOU's before, banks and retailers honored these IOU's -same as cash.

[HBJapo]

There is always a choice. :Razz:

it more difficult when the payroll person is a tall blond and the owner likes blondes....:Neutral:

Japo :Envious:

[Santa Fe Eric]

it more difficult when the payroll person is a tall blond and the owner likes blondes....:Neutral:

Japo :Envious:

Just dye your hair :ROFL:

How are you Japo?

[smokinflies]

My question is:

Are we gonna be collecting interest on those IOU's?

[Webfoot]

Would and electronic tax filing (return) possibly avert the I.O.U.? I’m starting to
Wonder if Arnold inherited or created the current crisis????

[olfishergal]

I have founf this tidbit to be quite interesting. One of my clients hadn't filed tax returns (state) in years. He went back and filed them dsating back to 1995. mOST of them had refunds on them...Low and behold, the state would only give the refunds for the past 5 years. Some of those old returns had more than $1000 on them....what a crock.....Now, if you owe them, they will still hit you for penalities and interest for all of the years....gotta love it. OFG

[Troutman65]

Quote by HBJAPO: " Most amazingly all, the money the IOU is being issued for is MY money. It was taken out of MY check. "

Yeah, I am going to be really P**** OFF if I get a IOU. I paid my taxes, ( Taken out of my check every 2 weeks ) And I want MY $$. *()%^*)&%(#^*$@!(#(#)%^_(&$$!@(&%^)(&+)^)#%@#!@&%^$%(*&*)_*)*%$*$^!^*%$%^)(*)_&_&$@&$*@#)&^+(&*+)(__&_&$$@#$@#*&^%^+()*+_(+%&(%#@&(^%^+()*+_+)_)&&*$#&*$^#&^^*((^@#&*&()%(^

Enough said about how I feel about it. :mad:

[smalweld]

Funny how they can justify not giving us back our money but keep in mind that if you got a state income tax return, did you know that you are taxed on that also!!! That pissed me off when I found out about that a few years ago. For me I would really like to just break even on my tax returns but money is too tight and I look forward to my returns just to catch up on some bills or splurge a little bit. Kind of like a vacation account that I pay into and come tax time, I get a vacation. Can we demand that the state pay us penalties and interest... after all its a forced upon us(by the state) loan to the state for longer than what we have agreed to. Personally if a budget is not passed by a certain time, the legislators should not be paid and have no perks until its passed.

[HBJapo]

Just dye your hair :ROFL:

How are you Japo?

Too funny Eric!
I'm doing great Eric, how are you?? A bit of tendonitis kept me off the water this weekend, but it's all good!

Hope you are hooking up the bigs ones!

Japo :Envious:

[HBJapo]

My question is:

Are we gonna be collecting interest on those IOU's?

Yeah, right! But, if you're late....penalties, interest, jail time...

Japo :Envious:

[greeper]

Just do what Obama's picks for Treasury Sec. Timothy Geithner and his pick for Health Sec. Daschle do, don't pay your taxes.. Genius the man is making one great decision after another. Whooopeee

[Granny Fish]

Funny how they can justify not giving us back our money but keep in mind that if you got a state income tax return, did you know that you are taxed on that also!!!

What a lot of people fail to understand is that their tax refund is not a rebate but a refund of over paid taxes. When you over pay on your taxes you are in essence loaning the government money interest free till you file, but of course you do not pay taxes on those earnings until they are returned to you the following year.

It really isn't that difficult to estimate your taxes and figure out if you need to adjust your W2 mid year so you don't end up paying at the end of the year.

I never could understand why someone would want to give their money to the government when they don't have to. I guess it is good the government is willing to give it back when we over pay. :Wink:

[greeper]

What a lot of people fail to understand is that their tax refund is not a rebate but a refund of over paid taxes. When you over pay on your taxes you are in essence loaning the government money interest free till you file, but of course you do not pay taxes on those earnings until they are returned to you the following year.

It really isn't that difficult to estimate your taxes and figure out if you need to adjust your W2 mid year so you don't end up paying at the end of the year.

I never could understand why someone would want to give their money to the government when they don't have to. I guess it is good the government is willing to give it back when we over pay. :Wink:

That couldn't be more correct, figure out the diffenrence and you're better off investing that amount yourself.. It's crazy to give them free money.

[maxpowers]

What a lot of people fail to understand is that their tax refund is not a rebate but a refund of over paid taxes. When you over pay on your taxes you are in essence loaning the government money interest free till you file, but of course you do not pay taxes on those earnings until they are returned to you the following year.

It really isn't that difficult to estimate your taxes and figure out if you need to adjust your W2 mid year so you don't end up paying at the end of the year.

I never could understand why someone would want to give their money to the government when they don't have to. I guess it is good the government is willing to give it back when we over pay. :Wink:

"When you over pay on your taxes you are in essence loaning the government money interest free till you file, but of course you do not pay taxes on those earnings until they are returned to you the following year."

This quote make no sense since would this not be your after taxed money that you loaned the government and not earnings? I mean if you up the exemptions then aren't you essentially trying to get your after taxed earning to stay with you and not with the government? Can someone clarify this?

Mike

[Granny Fish]

"When you over pay on your taxes you are in essence loaning the government money interest free till you file, but of course you do not pay taxes on those earnings until they are returned to you the following year."

This quote make no sense since would this not be your after taxed money that you loaned the government and not earnings? I mean if you up the exemptions then aren't you essentially trying to get your after taxed earning to stay with you and not with the government? Can someone clarify this?

Mike

No - it would not be after tax money since income tax comes from your income before taxes... If I get a refund in 2009 for taxes over paid in 2008 then when I file my 2009 taxes, the refund counts as income.

I would suggest you talk with a tax professional if you are receiving a big check at the end of the year. There are several things you can do to reduce the amount of taxes you owe as well as making sure you don't over pay. Most basically would be adjusting the deductions on your W2 so less is taken out each week.

[maxpowers]

anyway I thought this sounded weird so I look it up. For most of us (standard deduction), there is no liability it seems. Only with people who itemized and deducted a bunch. This link came from turbotax blog so take it for what it worth.

http://turbotaxblog.typepad.com/turbotax_blog/2007/02/is-my-state-tax.html

[maxpowers]

So KFI (Jon and Ken) reported that our great State Controller (Everyone gets IOUs) ordered $2 million dollars worth of modular workstations (cubicles) in June 08 and Jan 09. Hmmmm....Where is my refund again Mr Chiang?

Mike

http://www.thecalifornian.com/article/20090203/NEWS01/90203019/1002/rss