Financial Focus: Your Tax Refund Has Been Taken By a Gov't Shutdown

Financial Focus: Your Tax Refund Has Been Taken By a Gov't Shutdown

Financial Focus: Your Tax Refund Has Been Taken By a Gov't Shutdown

CLEVELAND- If the government shutdown continues, here's a twist: You would still owe your taxes on time.

The IRS already planned to start processing taxes in mid-January, so there is a possibility that if the shutdown ends soon taxes will not be impacted. -Mexican border. As a result, about 800,000 federal workers have been unpaid due to the closure of about a quarter of the federal government. But, be prepared to adjust your budget accordingly if you have to wait for a refund.

If the shutdown is resolved in a few weeks, it may not affect taxpayers, but the current situation increases the likelihood of a delay in refunds - which could put pressure on lawmakers to reach a deal to fund the government, Rubin wrote.

As if tax season isn't enough of a headache, a partial government shutdown is making things worse.

Tax-filing season normally begins in mid-January and most people receive there W-2 forms towards the end of the month.

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The U.S. tax filing season normally starts early in the year, ahead of the April 15 deadline for filing income tax returns.

The IRS plan says that only 12.5 percent of the IRS workforce is authorized to work during a shutdown, while the rest of the agency faces furloughs. The government will take your money but it can't do refunds during a shutdown.

Looking back at previous year, by February 2, 2018, the IRS had paid $12.6 billion in refunds to more than six million households.

One other area in which the IRS may have problems is the continuing implementation of the 2017 tax legislation passed by Republicans in Congress and signed by Trump.

The tax refund is the single largest financial event of the year for many people, especially who count on large refunds to pay down debt, catch up on bills, or make major purchases.

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