Frequently Asked Questions:

1. Should I wait to file my return?

No. If you have all of the documents and information needed to prepare your return, you may file it any time through April 15 (or October 15, if filed on extension). The refund delay does not affect the return due date or our ability to process returns.

1. When will the refund delay be lifted? (Updated February 20, 2009)

It is anticipated that as soon as the cash problems are solved, the refund delay will be lifted. Check this website for updated information on the status of the delay.

1. Now that the budget is passed, when will my refund be issued? (Updated February 20, 2009)

Even though the budget is enacted, the state must now determine if there is sufficient cash to pay outstanding debts, including tax refunds.  Until then, refunds will continue to be delayed.

1. Will you still honor my direct deposit request (DDR) when the delay is lifted?

Yes, your DDR will be honored when the state resumes the payment of refunds.

1. Is it possible that I will be issued an IOU?

If the state’s cash flow problems do not improve, the Controller may need to issue IOUs. If the Controller has to issue IOUs, you will receive a paper IOU warrant, even if you requested a direct deposit of your refund.

1. Are all refunds delayed or just 2008 tax year refunds? (Updated February 20, 2009)

All refunds are delayed, regardless of the tax year they apply to. For example, an approved refund claim for tax year 2006 will be delayed until the state’s cash problems are solved.

1. Am I entitled to receive interest because of the delay?

It depends upon the length of the delay. For individual taxpayers, interest on current year refunds is only paid if your refund is not issued within 45 days after April 15, or the date that your return is filed, whichever is later. If you are entitled to receive interest on a prior year refund, you will receive it when your refund is issued.

1. Can I apply my refund as an estimated payment toward my 2009 taxes?

Yes, if on your 2008 return you request that your refund be applied toward your 2009 taxes, we will apply the amount you designate when we process your return.

1. If I owe for other debts collected by FTB, will my refund be applied toward that debt?

Yes. You will be refunded the difference, if any, once the delay on issuing refunds is lifted.