The deadline for filing your 2014 federal tax return has been April 15th for decades, with the last person who is owed a refund getting their payment usually by the end of May. This year, though, even with the advent of the internet and phone-filing systems, people who file early and folks who wait until the final deadline, are looking to have their refunds held back several months, with payouts not expected to happen until October of 2015.
The news of the major change was first broken by website National Report, who says that the Obama administration is purposely holding owed refunds to help save the government money. According to Report, the Federal Government returns around $350 billion dollars of what it has collected from taxes throughout the year, and withholding the payouts until October will allow the government to gain an additional $30 billion in interest and additional borrowing costs.
The change is not universal, though. The new rebate delay is only set to affect those who have filled under an individual status, meaning large corporations and businesses will still be eligible to receive any refunds owed almost immediately, while the rest of us wait.
“Your money is still coming, and we will not be holding back an extra cent,” said White House Press Secretary Josh Earnest. “Pulling back payments until the end of 2015 will help increase government earnings. This is merely a new structure to a system that has been in place for generations. Sometimes, change is inevitable.”
As many Americans rely every year on their tax returns, planning vacations, expensive purchases, and some even wisely putting it in savings or using it to pay rent or bills, this push could cause some headaches for those people who live paycheck-to-paycheck.
“It’s just awful, seriously awful,” said Marie Jordan, a mother of 5 young children in Jamaica Plain, Massachusetts. “I was going to use my refund to hire a babysitter and take a 2-week cruise vacation to the Bahamas in March, all by myself. Maybe find a nice Cabana boy to take back to my stateroom. Apparently that’s not happening, now. I hate our government in times like this.”
Many taxpayers echoed Jordan’s feelings, saying that they need their money sooner rather than later.
“This is going to really kill my February,” said taxpayer Joe Goldsmith, a recently divorced bachelor in Missouri. “I work a crappy retail job, and barely can make ends meet on my weekly paycheck, so I was planning on doing an early file, and getting my money back by February. Even though my bitch ex-wife said I should save it for alimony, I was going to use it to buy a big screen TV and throw a Super Bowl bash for myself and some friends. I guess I will just watch the game alone on my 27″ tube TV instead. Thanks, Obama.”
According to Earnest, the deadline for filing your Federal Income Tax Returns will remain April 15th, with checks and direct deposits being made starting October 15, 2015.