Tax time and confused......

[doglover]

I got my H&R software in the mail today to do our taxes online (it's what we used last year). They don't waste anytime do they, lol! I won't even be ready till March..... I think.

If you don't mind I would like to know your guys' experience with tax refunds. Our Trustee told us WE WILL get our refund because the District we filed in and IRS is not in our plan (we don't owe anything to them) but ....QUOTE " The Special Procedures Department will handle all our transactions causing any refunds to be delayed by several weeks and we will not be eligible for electronic refund".
My husband says all that means is that we can't do the rapid refund type thing, where they cut you a check based on their estimate.

Where should I get my taxes done because H&R software we used last year did direct deposit. Is that what is meant by "electronic refund"????? I'm so confused. Any help would be greatly appreciated! TY


P.S. Will the IRS send my trustee a copy of your tax returns or do I do that? Thanks so much

[Granny]

I got my H&R software in the mail today to do our taxes online (it's what we used last year). They don't waste anytime do they, lol! I won't even be ready till March..... I think.

If you don't mind I would like to know your guys' experience with tax refunds. Our Trustee told us WE WILL get our refund because the District we filed in and IRS is not in our plan (we don't owe anything to them) but ....QUOTE " The Special Procedures Department will handle all our transactions causing any refunds to be delayed by several weeks and we will not be eligible for electronic refund".
My husband says all that means is that we can't do the rapid refund type thing, where they cut you a check based on their estimate.

No rapid refund. You'll get a paper check. Mine was sent to the Dallas Trustee who then forwarded it to me. The Dallas trustee keeps anything over $2,000, don't know about the Plano trustee, but I'd imagine they would have a similar policy.

Where should I get my taxes done because H&R software we used last year did direct deposit. Is that what is meant by "electronic refund"????? I'm so confused. Any help would be greatly appreciated! TY

Yes direct deposit is the same as an electronic refund

P.S. Will the IRS send my trustee a copy of your tax returns or do I do that? Thanks so much

No the IRS doesn't send a copy of the tax return, so if your trustee wants it, you will have to copy and send it yourself. I use TaxAct. They have a free version online and you can print a hard copy.

[doglover]

Thanks Granny. The trustee told us that refund check will get sent to us directly. When we had our finance class before the 341 the lady who was giving it even told us she was surprised to hear that Ch. 13 trustee dosen't keep anything.

Thanks again. Oh.... when I file should I just automatically put send paper check instead of Direct Deposit, or will they figure all that out?

[krielly]

I have always filed electronically, and didn't know I couldn't get my refund direct deposited until this past year. All it amounted to was that the IRS sent me a paper check (even though I requested direct deposit). I was monitoring my refund status on line with the IRS. I ended up speaking to someone (I think via email) that told me that the check does get "reviewed" by someone as we are in bankruptcy (and owed money to the IRS) but that only seemed to delay it for a few days, not a few weeks. Although the IRS was getting paid through our plan, they did not withold any of our refund. I was afraid they would, but they didn't.

[Granny]

Thanks again. Oh.... when I file should I just automatically put send paper check instead of Direct Deposit, or will they figure all that out?

They will automatically send a paper check if you don't give them any banking info (and I wouldn't, they could use it later in life if you happen to have the same bank and get into trouble with them.)

Here's how it went for me with the Dallas trustee

Oct 06 filed 2005 taxes with injured spouse form, which delays refund but when hubby owed them, it at least got us some back

Filed BK 12/20/06 with taxes owed to IRS

08/03/07 BK Confirmed, IRS didn't file a claim even though I owe them, they haven't figured it out yet (trust fund taxes for our business)

08/15/07 trustee receives refund check, deposits it to his account and cuts me a check for the full amount

10/15/07 filed 2006 taxes

12/13/07 I'm still waiting for the refund and it's only about $250.00.

I think that any refunds must go through the Dallas IRS office first and then is sent to the trustee, at least that's how it happened in my case so far. I haven't heard a peep out of the IRS regarding the 2006 refund, not even a letter, so who knows where it is!

[James H]

my trustee never said anything about wanted to see my taxes and I never got anything in the mail. So would I be correct in thinking that I don't need to send them anything?


And when you do your taxes is there a question that asks if you have filed for bankruptcy?

[chpxiii]

I have the same trustee as Granny, but my refunds occurred around tax time. It was only one year I got a refund. I filed as any "normal" tax paying citizen (cause I am!) Here was the process:

1) Tax time rolls around and I got my W2.

2) Fill out my tax forms.

3) If I owe money, send money in with tax form. That's it.

4) If I get a refund, send in tax form.

5) My refund check is automatically sent to trustee.

6) Trustee sends me a check for the refund from *his* account.

The one year I had a refund, I think it was like, $1200 or so. He refunded the whole thing. Lawyer's paralegal told me the trustee only kept monies from refunds that were in excess of $2,000. Since it was only $1200, I got the full refund.

Only difference that year as opposed to any other year was that I got my refund check later than "normal" since it had the extra step of going through the trustee's office.

Of the four years in chpt. 13, only one year I received a refund. The other years I owed. Frankly, I set it up that way so there was no chance the trustee could keep any of my income tax refund.

[tiggerjack]

In my experience, we filed electronically through turbo-tax and received our refund electronically. Both refunds we received were over 2K, and the Plano Trustee took every penny of the refunds and modified the plan from 90% payback to 100%. My trustee did not mention anything about the taxes either, but there was some very general wording in the orginal papers regarding the refunds. The 2K line was never mentioned, but I can say they were expecting me to send the whole refund when I called in and asked about it. There have not been any questions about bankruptcy when I entered my taxes in turbo tax for the web.

[chpxiii]

In my experience, we filed electronically through turbo-tax and received our refund electronically. Both refunds we received were over 2K, and the Plano Trustee took every penny of the refunds and modified the plan from 90% payback to 100%. My trustee did not mention anything about the taxes either, but there was some very general wording in the orginal papers regarding the refunds. The 2K line was never mentioned, but I can say they were expecting me to send the whole refund when I called in and asked about it. There have not been any questions about bankruptcy when I entered my taxes in turbo tax for the web.

That's because the IRS doesn't care if you're in bankruptcy. They want your tax money.

[doglover]

In my experience, we filed electronically through turbo-tax and received our refund electronically. Both refunds we received were over 2K, and the Plano Trustee took every penny of the refunds .

Hi, If you received your refund back electronically how did the trustee get it? Did you tell him what your refund was and then he said when it gets to your bank account withdraw and give it to him? Hopefully this year you'll be able to keep some of your own money!

[Flamingo]

my trustee never said anything about wanted to see my taxes and I never got anything in the mail. So would I be correct in thinking that I don't need to send them anything?


And when you do your taxes is there a question that asks if you have filed for bankruptcy?

No, you would not be correct in thinking that you don't need to send them anything. Always contact your attorney and ask. As to your second question, no.