In a somewhat ominous turn of events, our tax refund has still not appeared.
I am one of those people that tends to overpay my taxes - mostly because of the fact that I sincerely loathe having to write a check at the end of the year to the government. I understand in theory the concept that I am "losing" the value of money with it sitting in the government's coffers instead of my own. At the same time, the absolute feeling of anger and depression when I have to do so is enough to convince me it is a convenience to do so, for my own mental health if for now other reason.
So, at the end of last month - having secured all of our tax documentation - I filed our taxes and patiently waited for the tax return to appear in the bank account. That was two weeks ago.
As it turns out, the IRS does have a site where you can check on the status of your tax return (https://www.irs.gov/refunds). Although I have never had cause to use it, I went ahead and filled out the form (Social Security Number, filing status, precise refund amount), and waited.
Congratulations, the website returned. Your refund has been approved and you can expect your money to hit the bank in the not too distant future.
Now, I try to measure my words here and in my personal life about the government - after all, it really just serves no useful purpose and in many cases the "government" is just a lot of people going about their lives like the rest of us. But I find it not a little irritating that for the years I have "owed" money, the money comes out almost immediately - and as some may know, if you miscalculate it more by $1,000 two years running, you will be charged a fee for not withholding enough and it will be strongly "suggested" that you move to quarterly payments.
I am sure, of course, that it is just a technical spread issue - they are earning some level of interest on my money while it sits for the additional days until it magically appears in my bank account. And to be doubly fair, the amount sitting there really is my own issue due to previous years of not doing as good a job as I could have with estimating and having the shock at the end of the process.
Still - and as a public service message - I might humbly suggest to those in power that one way to not irritate the people to pay your salaries through their taxes is to ensure receiving their refund is as simple and easy as getting a refund at a store. The private sector has the technology and I suggest it would go a small way towards reducing irritation on the whole issue of taxes.
I still haven't filed our taxes yet. Only have time during weekends to go to his office and I've just been lazy. Need to get on that this weekend.
ReplyDeleteAnonymous - We have filed our electronically for years, but I well remember the run to the post office.
DeleteIn terms of timing, I always try to find the sweet spot between "Do I have all the inputs?", "Do I owe?", and "How quickly do I want my money back?"
I am of the humble opinion that paycheck withdrawal, a "temporary" measure imposed to get the U.S. through World War II, is a major reason for the uncontrolled expansion of the federal government over my lifetime. Imagine if everyone got to keep their money until being asked to pony up a check on April 15 that was larger than their mortgages and car payments. The rage you feel when you owe, multiplied by 300 million = tax and government reform, perhaps.
ReplyDeleteWarren, I cannot disagree with you there. That would actually be a plank that someone should run on. I guarantee you if that became law, it would only last for a single year and then the outrage would be tremendous.
DeleteAmity Shlaes wrote the book on it: The Greedy Hand. Beardsley Ruml is the FDR minion who originated the concept of "payroll withholding". Been saying for many years now that I have five words for Social Security: "I want my money back". Uncle Sugar has been doing government sanctioned extortion of my paycheck since 1969. I have every intention of being mean enough and tough enough to live long enough to do it.
DeleteAs for the IRS, they are so backlogged with paper returns that electronic filing is the only sure way to get your refund. Due to a major snafu in our situation, we had to file amended returns for 2019 and 2020. The 2020 was filed electonically and the refund posted to my bank account in two weeks. The 2019 amended return had to be paper filed, and our accountant said to not count on the refund until it shows up in the mail--it may or may not be this year.
Ugh Greg, that sounds awful.
DeleteI have not read Shlaes' book The Greedy Hand but I have read The Forgotten Man, which I also found engaging (and dealing with the same time period).
You do not have to file on time if they owe you money back. This bit of info coming from a previously employed as an auditor for the irs, and my tax preparer for the past 25yrs. Filing an extension or 'late' once every 7ish years will prevent you from ever getting audited.
ReplyDeleteThat said, for the last 10yrs since I never owe .fed taxes, I usually file mine in August or September. Putting them in that far past the deadline usually gets them seen slower (since the temps hired for the 'rush' are no longer there), however it makes for a nice vacation when the leaves are at their peak and the kids are back in school.
I've also filed them a year late, filing 2 years worth in the same envelope. 2 separate deposits a few hours apart.
State tax is done the same way. $25 extra a paycheck ensures I don't owe, and gives me that 'extension' without filing for one (that's not needed).
Having just retired 2 weeks ago, this next tax season will be a bit different, and I'll be forced to do it on time to see where things lie for the next season. Of course, that might allow me to do it electronically at that point. A LOT less money to worry about coming in might mean a lot less going out as well.
JMO, YMMV, IANATP
Millerized - Interesting. I have filed an amended return once, but I did not know that was more established version.
DeleteGood luck on your retirement! If yours is like my parents, they found their overall tax burden reduced as they had a great deal less money going out as well.
"They" don't care how pissed you are. We are tax slaves.
ReplyDeleteTM - Do not disagree the larger political base views us as tax slaves. Oddly enough, the political class could pass a law about processing returns and give metrics - tie them to increases or bonuses. Sadly though, what is applied in the real world does not count there.
Delete+1 Tree Mike
DeleteI filed mine on 28FEB. I still haven't seen my return yet.
ReplyDeletePete, it has not hit yet today. If it does not hit this weekend, I am supposed wait yet longer before I contact anyone.
DeleteWarren Bluhm is spot on!
ReplyDeleteI'm like you TB in that I generally have money coming back since I overpay. My reason though is that our income varies so much that I've had to pay the fee and get strong suggestions to do quarterly payments more than once.
Because I'm usually receiving a refund and I know people who have had fraudulent tax returns filed on their behalf, I usually get mine filed by the second week of February and I'm pretty sure my refund was deposited within about 10 days. But it seems like the closer you get to tax filing deadlines, the longer it takes which I assume just points to volume of forms being processed and not some devious plan to get rich off of interest.
Ed, timing probably does have something to do with it, although one would think that if this was a known thing, they would balance their hiring to account for a greater number of tax forms at the end of the season than at the beginning.
DeleteI just checked the IRS website and they say for an electronic return, direct deposit with no flags to expect on average 21 days for a refund.
DeleteEd, ours rolled into our account his morning. It took about 16 days, so that seems line with what they are saying now.
DeleteImagine if any current business said it would take 3 weeks to refund money. I am mystified why we do not demand of our government what we demand of the private sector.
Ours hasn't either! Of course, I would have had to file them first . . . :)
ReplyDeleteDarn it John! That unfortunate cause and effect...
DeleteGlad to read through all the comments and see your refund has come. We always have to pay. My wife manages our finances, and that's how she prefers it -- get the money as we go, then pay what we owe in April. It used to be a pretty hefty amount but now that she is retired, it's not as much and not too painful since we know it's coming and we plan for it. I would rather do it the way you, but you know what they say about choosing one's battles.
ReplyDeleteBob, I can certainly understand both theories - the "pay as you go" as well as "choosing one's battles(!)". If we had a more regular income from year to year, that might become and option - if, as you say, you plan for it.
Delete