Will tax refunds be delayed because of a potential Government shut down?

That’s what our users are starting to chatter about–is the government running out of money and IRS holding out on tax refunds? We sit now wondering if this question arises from sheer anxiety, hype because of political views, fact or fiction? Should our users be patient or panic? Mixed feelings on my part after reading this article: http://m.thefiscaltimes.com/fiscaltimes/#!/entry/debt-ceiling-drama-will-you-get-your-tax-refund-on,52f0c886025312186cc87e05

And our users have been circulating other sources that either point to supporting this theory or calling BS. We want to know what you think and tell us what you see out there in the cyber kingdom of Refund Land.

I ask, is there any merit to this? Weigh in here on this post dedicated to debunking the recent chatter on the original refund grapevine: igotmyrefund.com

If the government is running out of money on 2/7/14, and there is an impending government shutdown that causes a delay in tax refunds, our users will surely be screaming Where’s My Refund? a bit louder fairly soon.

POST YOUR ACTUAL TAX REFUND EXPERIENCE HERE: This is a “user to user” site and the primary mode of support is peer-to-peer, meaning users helping other users. Admin and moderators are not always present or may not have answers to questions. Users becomes more informed when they are here often to read and comment. We call them Top Contributors. We are not a group of experts, merely taxpayers who have learned more than we ever wanted to know about taxes.

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What Others Are Saying

  1. tabrea

    filed on 1/27/2014
    accepted on 1/28/14
    as of 2/13/2014 still processing

    I have never had this problem with my refund. expecting a really large return and very indeed of my money.
    I have called the IRS twice and was given the response that i need to wait until the 21 days to figure out what is going on. I have researched this issue of the delay for the past two weeks and im so tired of it. I need some anwers and i need it now on why i am still waiting. Some people are saying if you filed between 1/27/14 – 1/28/14 we were in the batch that had a error which means we will be wating much longer then everyone else. I used TaxSlayer to file my return and never have i had this problem.

  2. LadyFlee818

    I was the many 1121er’s and all that time I was able to get my transcript online but I was never allowed to log in to republic bank website until now. And although it says no money posted as of yet could that all this still be a good sign that I will receive my refund?

  3. Terry

    Oh yeah btw we import inflation so its never at home. Import it by buying goods in other country’s. The inflation is only there if there is excess currency in us. They hide it by inporting for goods. The issues in todays market is whether or not these country’s like China will continue to trade goods for mearly paper. Point is that to say our currency is no deflated is like saying gold is not 1200 a oz. When just a few years ago it was 200 a oz. Its due to hyperinflation.

  4. Terry

    Presses have not been turned off in five years since this administration. If us was as smart as you claim then tell me.. how come they create fiat currency you call money. Hyperinflation is caused as soon as you no longer back money by gold. Most country’s are now reverting back to that by selling oil for gold. In Africa you can acutely be jaild for using the usd and even in the state Utah takes gold and siver as currency. Point blank you think the presses are turned off? Well if they stay on then yess enterthestargate is correct. There is no debt ceiling or rather it could never be payed so raising it is always the agenda. Cause ootherwise the system would collapse. To think the us is too smart is naive

  5. Terry

    @WaitingWithPatience: obviously you’ve never heard of quantitative easing. Were about to number 3. Meaning three times in the last five years they have boosted the press by law to hyperinflat the usd. Guess you don’t know what your talking about hu?

  6. WaitingWithPatience

    @enterthestargate: While it is true that we print our own money, it is not possible to just print more money however. Adding additional currency might seem appealing, but have you heard of currency devaluation or hyperinflation? History shows, just in the case of Germany during WW2 that you cannot just print more money to pay a country’s debt without causing very serious inflation at home.

    The US is smarter than that. In turn, the sudden appearance of the MyRA program is not unexpected. If you know about this program, you will discover that it is backed by government BONDS. I capitalized that, because bonds are how a government can quickly raise money and rely on holding and investing that money for a specific length of time. The other option is to sell foreign holdings, things like currency, bonds and the like.

    But I’m sorry to say that just printing more money is not the solution.

    The debt ceiling issue is very real, however I’m undecided about my own opinion and since I’m a historian, not an economist, I can’t make an informed guess about what the economic future is. On the bright side, we will recover.

  7. enterthestargate

    Government debt ceiling is for fools.. ughhh hello.. We print our own money! Debt is the cost of printing money, not the value after the print. Its all a magic trick. How wouldn’t I be able to pay bills if I had a money printer? Every year they say this as a fall back manure so if they mess up they can say this crap to uunintelligent people.

  8. WaitingWithPatience

    @jemar2013: I appreciate that. I am doing some more research here. The key word in that WSJ article is “must.” The government MUST refund overpayments. Here’s my personal opinion:

    Those of us who receive all or part of our tax money back are “lending” the government investment capital. They invest it and earn a whole lot of interest. Part of that interest is returned to people who get back more than they “loaned” initially. I am among that crowd.

    But, they definitely earn more interest than they repay.

    A better system would be an IRS questionnaire in January, assessing your situation. If you are among those who get a total refund (or more), then you are not required to have federal taxes withheld. Those who will owe continue to have withholding. Then in February, you complete a much shorter tax return and claim your credits that are above what you would have paid. It is refunded to you in your paycheck.

    Obviously, you can ask your employer not to withhold taxes (at most places, anyhow). I don’t do it because I like having this savings account and I like helping the government make some money.

    But, our economy is tanking. Something needs to be done. Raising the debt ceiling, not raising the debt ceiling, raising minimum wage or not, we are in trouble. Three months ago, my salary was enough. Today, it’s not. Period. I didn’t change jobs, lose a job, etc. I had to have emergency surgery in December. The medical costs (even with good insurance) were enough to set me back a year.

  9. jemar707

    @WaitingWithPatience: thanks! We always are looking to rip apart the bs so people can chew it around and make better informed decisions.

  10. WaitingWithPatience

    @jemar2013: Here’s what I shared earlier as Anonymous:

    The Fiscal Times is not a legitimate source, it’s propaganda. Go find something in the Times or WSJ and come back with some credible information. I am always hesitant to believe anything from media that is privately funded, particularly when it’s one source.

    I am certain that there are legality issues surrounding the refund of overpayments. I am researching this now.

    I believe the current hysteria surrounding the shutdown is a result of old news from 2011 and early 2013 where a delay in refunds is mentioned. I don’t think it’s based on any credible and recent sources. I’ll do some more research though.

    My source: http://www.nytimes.com/2010/01/06/business/media/06post.html?_r=0

  11. Anonymous

    Google debt limit or debt ceiling and it will give you many posts. CNN is good huffington post Washington journal. I read in one that one extroidinary measure to be used was pension payments or something along that line would be temp stopped.

  12. Anonymous

    If the debt ceiling isn’t increased, Mr. Lew has said his agency will have to rely on the government’s cash-on-hand and incoming tax revenue to continue paying bills.
    Outside groups have previously estimated the government’s cash balance could continue covering bills for several weeks, but Mr. Lew said it wouldn’t last long based on the current schedule. The government had about $70 billion in cash at the end of Friday.

  13. jemar707

    Thank you Anonymous. I was hoping to have this stuff debunked and appreciate all the input. Do you have some of the links to credible sources which clarify and support the correct information? Thanks so much!

  14. Anonymous

    There won’t be a government shutdown. I’ve been reading there’s enough money to fund the government till the end of the month with the use of extroidinary measures. Stopping tax refunds is not one of them.

  15. Anonymous

    One more thing. The government collects interest on the tax money collected. It’s not “the government’s money” and it should not be included in the federal debt ceiling – because it’s not technically debt. They “hold” the money at a profit and return it.

    Personally, I don’t think people who get refunds should be required to pay tax. January questionairre… kids, check. income, check, education, check. You may elect non withholding status.

    I should be making interest off of my money. Even with minimum withholding, I’m still getting a refund

  16. Anonymous

    This article, as I stated earlier, is not from a reputable source. It’s from a private news source bankrolled entirely by an economic propagandist. accountingweb.com – also not reputable.

    Please find a reputable source like the NYT or WSJ when quoting the media. People who aren’t trained in research may not agree, but privately funded media with one funding source is never the right place to look.

  17. *Amy*

    I really would NOT worry about it. If anything, it may affect ppl who decide to wait til march to file..but usually when ppl are expecting a refund they dont wait that long.

  18. ElleH

    Everything I read and researched say that tax returns will strain the problem but that measures are in place to temporarily handle debt until the end of the month. I am sure they will reach an agreement before then.

  19. DespMom

    @*Amy*: I hope not. I am really worried for all my family and friends and folks here. Maybe we need to lock these dummies in a room and let no one out until they deal with this debt ceiling finally.

  20. *Amy*

    All the articles I’ve read say that even if they dont reach a deal, there’s enough $$ to pay them for awhile. Til about March I think.

  21. viola smith

    Anything is possible. The longer they hold on to the money the more they make in interest. That is millions of dollars per day in interest. That’s a powerful reason to push it off.