You’ve got it all planned…you get the return… you go on vacation… it’s all paid for…hold on- it may not all go as planned.
David Paterson, Governor of New York, has an unprecedented proposal- to delay tax returns for residents of New York State to assist in closing the states massive shortfalls. This strategy is pointed at helping the state from going broke before the end of the fiscal year; ending April 1st. Wait a Minute- does this sound familiar? Can you say BAILOUT? While he says a final determination has not been made, it is a consideration in helping him to balance the New York budget.
How can he do that you ask? Rather, you should be asking “why did I loan the State of New York money for no interest for a year?” If you receive a tax return it means that the withholding of your weekly wages may need to be adjusted. A return of money at the end of the year, while it feels good, means that you have been having too much withheld, allowing it to build up to give you this end of the year gratification. Speak with your tax accountant throughout the year, not just at tax time to make sure that your withholding is accurate to reflect your particular situation. No two returns are alike, so be sure to take into account all of your exemptions and deductions while estimating your withholding. If you like to have a lump sum at the end of the year, instead of loaning it to the Feds or New York State, make your monthly contribution into a savings account and withdraw it around the time you would have received your return. While it may take a little structure, at least you’ll know it’s there when you need it…and you can get to it on time.
Remember when we could count on Government to think of the people first?
