CNN 2010-03-10

And if you've already set off your tax return, there is no need to rush out to the mailbox. This year, cash strapped 1 states are going to be much slower in issuing your refund 2. Here to tell you why, Christine Romans at CNN money team. She joins us from New York. Christine, not a good thing to be dealing 3 with right now

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: No.

PHILLIPS: Not coming up on the holiday?

ROMANS: No, and these states have such big budget crisis. In many cases, they don't have a choice. Look, they have not been able to hire the people who usually do this work, right? The people usually are doing your tax refund. They don't have the money to hire the people, so they don't even have all the people in place to do this. In some cases, these states need your money a little bit longer to help them fill some budget holes. So think of it, Kyra, as a no- interest loan to your state that you don't have any control over.

Hawaii has already said that you could expect your refund July 1st. That is a delay due to the state's current fiscal 4 situation. July 1, 2010, no surprise there. Look, that's going to give them a little bit of $275 million pot that they are going to go towards balancing the state budget. North Carolina has said that they're not giving date for people, but that they're going to go on a week by week basis because of the affects of the slow economy. They are managing the distribution of refunds 5 as a result, so they won't give a date, but it could be anytime.

So, if you are in North Carolina, you're in Hawaii, or you're in a number of other states, actually, who have said we are considering this, and it may very well be that it's going to be a little bit slower for you. In some states, they're just slowing the processing a little bit. In other states, as I mentioned, they don't have the people that actually do the work because of state budget crunches 6. You can expect that this year, next year, and a few states did this last year. Look, I mean, this is the way it is. They don't have any money, and that means they're going to have to hold on to your money a little bit longer. A couple things I wanted to add. That means, of course, filing your taxes, the sooner the better. It also means if you need to think about your own budget crisis, you should start thinking about an extension. You can get another six months to pay your own taxes, and Kyra, this is critical. Everybody out there who is out there looking for a job, please, keep all of your receipts because you're going to be able to file -- you're going to be able to try and get money back for the expenses that you have passed out for trying to get a job, and that means plane tickets; it means your resume; it means any kind of career counseling, so keep track of all that stuff. You can write that off on your taxes this year-- Kyra.

PHILLIPS: All right. And apparently 7 the IRS is looking at us with a closer eye as well. Apparently, there are going to be more audits 8 is the word.

ROMANS: They need every single penny of our tax money because this is a job story. Jobs have disappeared, right? That means there's left money coming in. That means they're going to scrutinize 9. They need every penny that is owed to them yet.

PHILLIPS: Christine Romans, thanks, but no thanks.