photo credit: Erik Charlton

Though some taxpayers delight in receiving a large refund check each year, I’ve long preached against giving the government (state or local) an interest-free loan.  I’m in favor of adjusting withholdings so that your refund or tax due is less than $500 or so.

However, this year, Californians who are due a large state refund may be in for an unpleasant surprise.  The state may issue IOUs for state refunds starting on February 1st.  There is a large anticipated budget deficit for this year and the state is running out of cash!

For more information, read the article here.