As a 58-year-old woman on disability, Robin Short of Wallingford, Connecticut, relies on her tax refund to catch up on bills. She filed her return electronically in February, opting for direct deposit so she could get her $773 refund quickly.
She’s still waiting, as are millions of others. In my latest for the Associated Press, how the IRS is slowly resuming operations after pandemic-related lockdowns, but delayed refunds are devastating some people’s finances.
Why do people so foolishly want a big tax refund to catch up on bills. All you need to do is change your deduction on your weekly paycheck, pocket the extra pay per week and stay up to date on bill payments. If that doesn’t work for the person than they need to learn proper financial skills
I used to think along similar lines, mostly because I always had a job with a steady paycheck. Many low- and moderate-income people have variable incomes. They’re often hourly workers who can’t predict their schedules, because their employers change those with little warning. As Thompson says, changing withholding requires first knowing that’s a possibility — many don’t — and being able to predict the future. As we know from this year, the future often doesn’t cooperate.