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As the debt ceiling deadline approaches.
There's a chance that your tax refund could be at risk joining me now rich cop -- managing director for wealth -- financial planning rich it's always great to have you on the show.
So here's the deal.
So congress has enough money to go through February.
About fifteen mid February this about the time there -- -- starts trying to get their tax refunds they file their taxes now I know you're against refunds.
But do you think it's possible they will delay these refunds.
I'm I'm hopeful that it's not I mean I I think that the reality is that congress will do the right thing I mean it possibly suspend.
Suspended debt -- allow for you know lenders to get paid both you know people holding treasuries as well as people who.
Are actually lending the government money expecting a refund and I business -- to work at this gambit from the Republicans doesn't work now.
Could some people be at risk of not getting their refund.
I look anything's possible I think we look at the end of the day if the debt ceiling isn't raised -- have to restrict their expenses somewhere it possibly can mean that refunds are somewhere down the road they are.
Telling us IRS is saying that if you electronically file expect a refund within ten days and that's similar to last year.
But you know that's what they could be saying now not knowing what's gonna happen just you know a few weeks are -- streets and.
We have no idea I mean there really does is is the IRS doesn't control that's absolutely not so they -- they have to react and sometimes they reacted takes a long time for the changes to mean it made that need to be made.
Now I know you're against refunds but there's some people out there to try to get the merrier like to get them what's your.
Problem with refunds and -- -- my problem with the refund is that you're loaning the government money.
Zero cent interest you're own money and then you get it back and it's it's funny how people think because -- -- I got my got and copy back X dollars.
Well it's your money that you should not ever paid for the government to begin with that you've gotten back for your guy gotten back.
I think it's just better to look every year your withholding or estimated payments if you're you know someone who S 1099.
And adjust that because things change your your tax rates of change of situation has -- -- Index rates have changed no kidding -- this would be a great year to -- -- great time to start thinking about what changes you need to make this are you talking to your clients right now about how they need to do to position themselves for next year absolutely this is the perfect time to be doing it because as we're thinking about 2012.
Filing were also looking at 2013 with the increase in income tax rates change in the Social Security.
Great the net investment income tax change -- you were just talking about California on earlier segment lot of California people have to change -- the state level to not just federal.
Retroactive time maybe maybe you're doing better maybe you weren't employed or had less income last year compared in the this year you wanna take a look every year.
Not just do what you did in the past and change -- withholding change your Smith.
Right so you say direct deposit your refund if you are doing the wrong thing getting line right.
I would ask you this -- should you pay your credit card or your bill to the IRS with a credit card.
You know I.
I think about that for myself but there's a fee in doing so and you know then you have to -- is obviously depends on how much you have to pay the IRS and how much set -- going to be for the -- have to pay.
Vs what's the benefit I know everyone loves points I -- points -- my credit -- also.
But you have to weigh that.
And then decide whether it's the right thing for you.
I should have shied away from doing so because the fees are too high I know it's ridiculous to pay a -- to pay the IRS and that's like just -- compounding exact.
I just president I see that yeah absolutely not -- a Rick Scott thanks for coming -- tonight -- pretty your time.
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