Author Topic: Tax return "season" has opened - will the debt ceiling fight slow refunds?  (Read 363 times)

geekette

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Today's the first day for federal returns, and due to the ACA (and paying our premium out of pocket for the cc bonuses) we're expecting a hefty refund.

Anyone know if the "extraordinary measures" by the fed wrt the debt ceiling will include delaying refunds?

sonofsven

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I don't know the answer to your question but I'm jealous that your provider accepts cc's! Mine will only link to a checking account.

bougette

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I read a news article that Janet Yellen warned Congress that it could delay tax refunds.

Another one said the Administration doesnít plan to begin negotiations until after the April 15th tax deadline, so that should be interesting. Perhaps they are counting on angry tax payers to pressure the GOP?

I plan to file as soon as Iíve received all my 1099ís next week to try to not get caught up in the delay, but I donít know if that will make a difference since Yellen is already taking extraordinary measures.

https://www.cnbc.com/amp/2023/01/13/us-will-hit-its-debt-limit-thursday-start-taking-steps-to-avoid-default-yellen-warns-congress.html

https://www.bloomberg.com/news/articles/2023-01-19/debt-ceiling-fight-what-does-default-battle-mean-for-us-investors

SeattleCPA

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For what it's worth, when you have a giant refund (like the size Congress gets to review so $2M or more) IRS will tell you that the big refund may be delayed by a few days so they have funds.

Source for parenthetical remark above: https://www.irs.gov/refunds/large-tax-refunds-and-credits-subject-to-review-by-the-joint-committee-on-taxation-what-to-expect#:~:text=If%20you%20claim%20a%20refund,Committee%20on%20Taxation%20(JCT).

seattlecyclone

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I imagine the Treasury department is delaying all payments where they have any legal basis to do so. This probably includes tax refunds.

geekette

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My fears of a slow refund were unwarranted. 

I filed on Monday, 1/23 and the return was accepted about 30 minutes later.  The refund was approved today (Friday), and the refund should hit our bank on Tuesday, 1/31.