Tax Guru-Ker$tetter Letter
Thursday, July 11, 2002
State Tax Refunds
A while ago, I commented on the fact that the State of Missouri was short on cash, making people wait for their income tax refunds. I predicted that more states would be trying this trick.
According to this story, Illinois is in the same boat as are several states in regard to much lower tax revenues than their crystal balls had foreseen, and is making people wait. However, rather than wait until the next wave of expected estimated tax payments arrives in Springfield, the Illinois rulers are borrowing money to come up with the refund cash. That's only right because it's what a person would be expected to do if s/he owes money to the State.
This is also a very clear reminder of how stupid it is to overpay your taxes and expect a big refund check next year, as far too many people do.