Indiana sitting on $3.9 billion in reserves, promising refundable income tax credit

[Tombs]

Similar tactics kept the Soviet Union strong for years; kick the **** out of some small, non-descript country occasionally and people will leave you alone because they're badasses. Same thing with our government only without the gulags.

We usually just kill people and blame it on a suicide, instead.

 

[phylodog]

So how would someone pay for either of the above while waiting for their next refund? Or do these events conveniently only happen the week the refund check shows up?

To be clear...not trying to get you to change your mind. Not my place to do so. Just healthy debate.

Who says they have it then? All I'm saying is an awful lot of people live a lot of years basically paycheck to paycheck and it doesn't take a big hit to drain a savings account. If that happens or someone is put into a position to have to borrow to solve the problem, worrying about getting hassled by the tax collector is a headache they don't need. All at the cost of not getting maybe a couple hundred bucks by investing that money until tax time.

I'm not trying to change your mind either, it's obviously your money and you can do what you want with it. For me, the peace of mind of not having to worry about it is worth a little less each paycheck which would like get swallowed by and disappear anyway.

 

[rhamersley]

only without the gulags.

Yet…

 

[dudley0]

Until we got into real estate we always tried to get the tax time to equal out. Best plan was if we got a little back. Better than owing.

Now we never know what the year will turn out like so the spouse has extra taken out of her check. I also, for some reason, had to start paying quarterly taxes which sucks in a bad way. Because of that we get money back. Wish they would just let it be due on the 15th of April so I would know what the hell was going on.

 

[tenring]

So this page is full of that stuff that makes things grow better?State of Indiana Debt Clock (usdebtclock.org)

 

[MCgrease08]

Works great until the furnace takes a dump, there's a medical issue and we have to pay the full deductible at once or our government decides to change the rules at the last minute just before tax time.

Scenarios like this are why I have an emergency fund.

 

[bwframe]

Maybe we should drop that sales tax down a penny or better yet two?

 

[phylodog]

Scenarios like this are why I have an emergency fund.

A luxury I lived without for many years

 

[Tombs]

So this page is full of that stuff that makes things grow better?State of Indiana Debt Clock (usdebtclock.org)

Indiana has its **** together compared to pretty much every other state, that's surprising.

 

[Timjoebillybob]

Keep it in the bank for the next time things are tough.

Per IN code they can't keep more than $x, I think somewhere around 2.5 billion. Anything over that gets refunded.

Personally I like the idea of living in a state with a significant cash reserve for emergencies. Better than just handing it out on random gibs.

However I do thing we are overdue to cut sales tax back down to 5%, especially since Indiana is raking it in from online sales now. The ONE thing Republicans are supposed to be able to do is cut taxes, yet they so rarely do around here. Start chipping away at fees and gas tax and everything else, and let the cash in the bank earn interest.

We do have a decent cash reserve. And see above about the cash in the bank.

 

[amboy49]

The last time this happened, somehow my employer didn't take enough taxes out or my tax preparer did it wrong and if it wasn't for the extra coming back to me, I would have owed. Since then, I have my employer take out an extra $10 state and federal which I almost always get back fully (state possibly not fully). My wife and I don't take exemptions even though we could claim multiple ones for the fact that once a year, the refund replenishes savings or goes towards big bills (or if something goes wrong and we owe, we should have it covered). Next year, I got an idea of what we should get back and I plan on paying off my car.

Why would you let the government use your money all year every year ? Sorry - folks who get a big refund each year should reconsider how they view their finances. Perhaps speak to a financial advisor. Just making a suggestion.

 

[amboy49]

I read that the state isn’t going to send out refund checks. Instead, they plan to credit the funds against taxes owed on returns submitted.

Sounds like a plan to return the money that isn’t a plan.

 

[dudley0]

I read that the state isn’t going to send out refund checks. Instead, they plan to credit the funds against taxes owed on returns submitted.

Sounds like a plan to return the money that isn’t a plan.

My first thought is this would be cheaper for the state. Plus maybe more people that pay taxes in can benefit, rather than a check sent to everyone in the state.

 

[Ziggidy]

Just got a bill from them about 5 weeks ago. They say I owe because I failed to add in my unemployment from last year (I only used it until I was called back to work - maybe 4 weeks).

I added it to federal, designating what it was from and that amount transferred to state filing. Everything was on the up and up. I have not heard back from the state yet.

What is interesting is I received a letter in the mail about 2 weeks ago from the IRS saying the unemployment that I had added in was not taxable and they were issuing a refund of overpaid tax.

The IRS was giving me back that tax and the state wants to double tax me for the amount the IRS claims I do not have to report.

Maybe after they straighten their books out they will not have such a surplus?

 

[Leadeye]

The problem I have with the state keeping extra taxpayer money is after time they get to thinking it's theirs and start looking for ways to spend it. Then they want more.

 

[jwamplerusa]

So this page is full of that stuff that makes things grow better?State of Indiana Debt Clock (usdebtclock.org)

So is my father used to say figures don't lie, but liars can figure.

So which of these things is true? Does Indiana have a 3.9 billion dollar surplus. (in my mind that means no debt and 3.9 billion dollars sitting in the bank)

Or does it hit in fact have substantial debt. Now in government terms I can see municipal bonds especially those on long-term maturity. Being somewhat excluded from the financial accounting.

So what does the 3.9 billion in this red title actually represent. Is this relative to current accounts? In other words those coming due within the states financial calendar year, Or some other measure?

Any members knowledgeable of the states' budget and accounting methodology want to weigh in? I'm curious, since it's my money.

 

[Timjoebillybob]

I read that the state isn’t going to send out refund checks. Instead, they plan to credit the funds against taxes owed on returns submitted.

Sounds like a plan to return the money that isn’t a plan.

It's a refundable tax credit is how I understand it. If you owe taxes they'll use part or all of it to cover it, if you're getting a refund they tack it on.

My first thought is this would be cheaper for the state. Plus maybe more people that pay taxes in can benefit, rather than a check sent to everyone in the state.

Seems like the smart way to go to me. And last time I don't think they sent it to everyone in the state, just those who filed.

So is my father used to say figures don't lie, but liars can figure.

So which of these things is true? Does Indiana have a 3.9 billion dollar surplus. (in my mind that means no debt and 3.9 billion dollars sitting in the bank)

Or does it hit in fact have substantial debt. Now in government terms I can see municipal bonds especially those on long-term maturity. Being somewhat excluded from the financial accounting.

I've checked three different sites and got three different amounts. Also debt for the state isn't just money borrowed/owed right now. It includes future pension payments, even if the fund has enough to cover it it's still counted as a debt. And things like that.

 

[gregr]

I read that the state isn’t going to send out refund checks. Instead, they plan to credit the funds against taxes owed on returns submitted.

Sounds like a plan to return the money that isn’t a plan.

But we never owe anyway...so we`ll be due a check no matter what...