New tax codes and government shutdown will delay your tax refund check
COLUMBIA, S.C. (WOLO)– The new tax code that was passed last year could impact thousands of South Carolinian tax returns this year. It was the largest overhaul of the tax code in 30 years. Between the IRS working out the kinks with that and the government shutdown, associate professor Donna Schmitt says you should not expect your tax returns anytime soon.
“If your financial plans are hinged on getting a refund the first of February, you need a new plan,” Schmitt said.
Schmitt says the Government shutdown is also slowing down the process. Seven out of eight IRS employees are not working right now, meaning refunds are getting processed but until the government opens back up there will be no refunds or audits, which could be a costly loss of productivity.
“And it has a trickle-down effect because people who usually get refunds, then tend to spend them. So there is actually economic effects that could be delayed if they continue to have the IRS shutdown,” Schmitt said.
Schmitt said even if you are one of those people who is on top of their tax returnsns, it might not make a difference this year with so many changes to tax code. Since there are so many changes, Schmitt said unless you are doing a standard deduction, having an actual person or company do your taxes might be best this year, especially if you are itemizing.
“Be careful answering, if you’re using software, just be careful. because a lot of the software is new, and it’s possible the software has mistakes in it,” Schmitt said.
For those who might take a bit longer to get your tax forms in– this might be your year.
“Procrastination isn’t usually something I recommend, but this might be the year for it,” Schmitt said.
Schmitt says if the government opened back up tomorrow, the delay wouldn’t be so bad, but with projections of the shutdown lasting longer, that is when those delays are going to hit us.