TAX REFUND and CH 13?

[bubbadirect]

I am still unaware of anywhere in my BK 13 paperwork that states that I owe the trustee the tax refund I am about to receive. I am in the Southern District of Indiana (Indianapolis) and am concerned about whether to report my refund check or not.

??????????--->Where on my CH 13 paperwork would it state that I am responsible to report this refund (and/or how much)???????????

Which form would tell me this information???

Thank you,
Bubbadirect

[Granny]

It's not in my paperwork either, but I found the info on the trustee's website. Have you checked your local trustee site?

[lrprn]

Also were you given verbal instructions about your tax refunds during your 341 or separate written instructions regarding what to do about possible tax refunds from your trustee's office after filing?

We received written instructions about what we had to report to our trustee during our Ch 13 including what to do with our annual tax returns and any tax refunds. The one front-and-back page arrived in the mail from our trustee's office within a month of our filing. We couldn't miss it if we tried - his office printed it on bright fluorescent pink paper!

[CATCHMEIFYOUCAN]

I wouldn't spend that refund IF ME were YOU. Usually the trustee would let you know upfront whether he wants that refund. In all honesty I would call the Trustee/associates about the refund. Just to be on the safe side, cuz if you spend it and he wanted it. Your case could either get dismissed or you'll just end up paying it back plus your plan!

Best Wishes, CMIYC

[Lorah93]

Your paperwork may not say anything about it, but the trustee is sending out the request letters for tax returns this week. Your paperwork does say that you have to turn over your returns for review when requested. That is commonplace. I filed in the same district as you and have the same trustee. I had not received a request and sent an email to the trustee to find out if they wanted them this year or not. They do. You should receive your letter shortly. I'm an old law filer and they don't usually take much. If you are a new law filer, and you received a refund, I wouldn't spend a dime of it until they let you know how much they want. There is a good chance the trustee will want it all. If you received a large refund, you need to adjust your witholdings to eliminate the refund. Your lawyer should have informed you of that. After I turned in my tax papers last year, the trustee actually advised me to chnge my deductions. Not trying to be gloom and doom, but I've been in Ch13 in your district for 2 years now and have a good report with the trustee and what is expected. Hope this helps.

[bubbadirect]

Your paperwork may not say anything about it, but the trustee is sending out the request letters for tax returns this week. Your paperwork does say that you have to turn over your returns for review when requested. That is commonplace. I filed in the same district as you and have the same trustee. I had not received a request and sent an email to the trustee to find out if they wanted them this year or not. They do. You should receive your letter shortly. I'm an old law filer and they don't usually take much. If you are a new law filer, and you received a refund, I wouldn't spend a dime of it until they let you know how much they want. There is a good chance the trustee will want it all. If you received a large refund, you need to adjust your witholdings to eliminate the refund. Your lawyer should have informed you of that. After I turned in my tax papers last year, the trustee actually advised me to chnge my deductions. Not trying to be gloom and doom, but I've been in Ch13 in your district for 2 years now and have a good report with the trustee and what is expected. Hope this helps.

Lorah-Thank you for your help. I don't even know where to look for this information on the website http://www.insb.uscourts.gov/# As to the refund, I am receiving a couple of thousand. Now we just had our 2nd child in December.

I know that I need to change my exemptions. Where should I turn for this information? I have increased the exemptions to 4 (My wife, my 1st child, my 2nd child, and myself.) I may need to increase that as well.

[lrprn]

I know that I need to change my exemptions. Where should I turn for this information?

Here you go - straight from the IRS - "How Do I Adjust My Tax Withholding?" at http://www.irs.gov/pub/irs-pdf/p919.pdf . Easy to understand and plug your numbers into until you get your anticipated tax refund under $300 if possible.

[bubbadirect]

Now What?

Here you go - straight from the IRS - "How Do I Adjust My Tax Withholding?" at http://www.irs.gov/pub/irs-pdf/p919.pdf . Easy to understand and plug your numbers into until you get your anticipated tax refund under $300 if possible.

Okay, I have downloaded the pdf file from the irs. Now it appears that I would have 9 exemptions. (myself, my wife, my 2 little ones) Does this appear to be correct? Would this be too much? I just don't want to give any tax refund to the trustee, if possible.

Thank you!

[lrprn]

Okay, I have downloaded the pdf file from the irs. Now it appears that I would have 9 exemptions. (myself, my wife, my 2 little ones) Does this appear to be correct? Would this be too much? I just don't want to give any tax refund to the trustee, if possible.

If 9 is what the IRS form shows will return the lowest amount of tax return for you, then go make those changes to your withholding. Others here in the forum with accounting backgrounds have said in other threads that you are ok listing up to 10 - above that your return gets automatically kicked out at the IRS for a closer look. There's some excellent information about adjusting your withholdings in this forum thread - http://www.bankruptcyforum.com/showt...75509#poststop

You don't want to find yourself owing money next April for 2007, so keep an eye on how much federal tax is being withheld and adjust accordingly throughout the year so that you will have just a few hundred dollars returned for this year. Once a quarter is a good time to reassess where you are. Good luck - hope everything works out for you!

[SinkingFast]

Unless you have a mortgage and typically Itemize your Deductions on your Income Tax forms, I don't know if I would go up to 9 or not.

There's an IRS Tax Calculator you can use that will give you a good rough idea of what to expect come tax time.

http://www.irs.gov/individuals/artic...=96196,00.html

[bubbadirect]

If 9 is what the IRS form shows will return the lowest amount of tax return for you, then go make those changes to your withholding. Others here in the forum with accounting backgrounds have said in other threads that you are ok listing up to 10 - above that your return gets automatically kicked out at the IRS for a closer look. There's some excellent information about adjusting your withholdings in this forum thread - http://www.bankruptcyforum.com/showt...75509#poststop

You don't want to find yourself owing money next April for 2007, so keep an eye on how much federal tax is being withheld and adjust accordingly throughout the year so that you will have just a few hundred dollars returned for this year. Once a quarter is a good time to reassess where you are. Good luck - hope everything works out for you!

Thank you so much for this helpful information. I am now going to scour the internet for a YTD calculator that should help me figure out how much tax will be owed. I still haven't filled out the PDF printout from the irs yet, and probably should ASAP...

Again, THank you!
bubbadirect

[JollyGG]

Thank you so much for this helpful information. I am now going to scour the internet for a YTD calculator that should help me figure out how much tax will be owed. I still haven't filled out the PDF printout from the irs yet, and probably should ASAP...

Again, THank you!
bubbadirect

http://www.irs.gov/individuals/article/0,,id=96196,00.html

[TiredandWeary]

FYI...my husband and I are in month 12 of our Chap. 13. We do have a mortgage and we do itemize our deductions every year on our tax forms. My husband claimed up to 11 exemptions in 2006 for the purpose of trying to have as little taxes withheld from each paycheck. It worked out good for us because we only ended up with a $950 tax refund this year. In previous years with the same income level, we used to get back $4000-$5000. I wish there was a way to decrease the withholdings so that we'd get back even less right now, but somehow, $950 was the best we could do. I don't think my husband can claim any more than 11 exemptions. I work part-time and always exempt myself, but I have little withholding taken out from each payday already.

[Granny]

I work part-time and always exempt myself, but I have little withholding taken out from each payday already.

If they are withholding anything for Federal Withholding, then they don't have you as exempt. Exempt is for special circumstances only and you probably don't qualify for exempt, usually it's reserved for students.

Your best bet would be to claim married with several dependents. Use this link and pull up Publication 15.

http://www.irs.gov/formspubs/lists/0,,id=97819,00.html

Then look at the Married table in the back for either weekly or biweekly, depending on how often you are paid. Find the average for your wages and then scan across and determine how many dependents you need to claim to have zero withheld.

[TiredandWeary]

Thanks Granny!!!