SAN FRANCISCO (KCBS RADIO) – Most California taxpayers now have additional time to pay their federal income tax.
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The IRS is extending the deadline until October 16th, because of the recent storms that impacted taxpayers.
This comes after the federal government declared a State of Emergency in California due to the damage caused by the severe storms in January.
California had already extended the deadline for state income tax to May 16th, but is expected to extend it again to coincide with the new IRS deadline.
As a result, taxpayers' payments won’t arrive at the usual time in April, but that doesn’t mean there won’t be a new budget.
"It just means that the forecasting part of doing this budget is going to have a new level of complexity because we're not going to have this one critical piece of cash data available to us," said H.D. Palmer, the deputy director for external affairs with the California Department of Finance.
The actual state budget is often quite different from what the forecasted version is anyways, according to Palmer.
"Things change on the spending side," he said. "We need to adjust for that."
"Particularly after we get the April tax receipts – which this year we will not have," said Palmer.
This isn't the first time the state has experienced a delay in tax payments – it also happened when the COVID-19 pandemic started.
"From an economic standpoint, we're blessed we don't have to deal with that," he said. "From a forecasting and revenue standpoint, we've got a new set of challenges to deal with."
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