New Tax Rebate

[sophie]

Do you think that the trustee will take that from us?

[BKOnce]

This is for income of year 2007? IRS begins to distribute checks out on 6/08, mostly $600 for single, and up to $120 for married, and it is EXTRA income to be filed on next year 2008 only. Once it is notified to court, up to trustee to decide/interpret as extra or reimbursement from already owed/filed tax refund in year 2007. He might take it, or he might not.

[MOMof3]

I'm really hoping that we get to keep it. It would seem unfair to keep it from us bk13 folks as we are suffering downturns in the economy as much as anyone else--if not more since we are on strict budgets w/little flex for all of the increases in prices & inflation.

[BKOnce]

Let hope so too. $600/single & $1200/married, for all tax filers under $75,000/yr on first batch.

Then a second refund batch follows later for people making over $75K/per family/per yr. (according to news)

[BKOnce]

I'm really hoping that we get to keep it. It would seem unfair to keep it from us bk13 folks as we are suffering downturns in the economy as much as anyone else--if not more since we are on strict budgets w/little flex for all of the increases in prices & inflation.

If you already filed tax 2007 & trustee already look at it before 4/08 (well anybody would too before 4/08 deadline comes first & before 6/08 distribution date too), so this is extra income to me and it will be listed on your next year 2008 return. So yes, my guess is trustee will not touch/look/care about it but he might/will look at it on your next form I-1040 of 2008 only (if you are still in plan next year?).

But then again, IRS will make special rules and will let you EXEMPT it next year on tax purposes (using another deduction box or itemization scheldule?), so trustee can not get any refund out of this additional amount next year either? So, it is FREE!?

[krielly]

Where did you hear about the 1st batch/second batch thing?
Just checked CNN website, but only see them discuss income under 75K for single filers and 150K for married filing jointly as income caps.
I don't see anything mentioned about 2 rounds of checks. Just wondering where you saw that? Thanks!
K

[BKOnce]

Yahoo,http://news.yahoo.com/s/ap/20080124/...onomy_stimulus

......
Individuals who pay income taxes would get up to $600, working couples $1,200 and those with children an additional $300 per child under the agreement. Workers who make at least $3,000 but don't pay taxes would get $300 rebates.

The first rebate payments could begin going out in May, and most people could have them by July, said Treasury Secretary Henry Paulson, noting that the IRS will already be overwhelmed processing 2007 tax returns. The rebates were expected to cost about $100 billion, and the package also includes close to $50 billion in business tax cuts.

The principal players in pulling the deal together were Pelosi, House Republican leader John Boehner and Paulson. The package would allow businesses to immediately write off 50 percent of purchases of plants and other capital equipment and permit small businesses to write off additional purchases of equipment. A GOP-written provision to allow businesses suffering losses now to reclaim taxes previously paid was dropped.

Pelosi, D-Calif., agreed to drop increases in food stamp and unemployment benefits during a Wednesday meeting in exchange for gaining the rebates of at least $300 for almost everyone earning a paycheck, including those who make too little to pay income taxes.

"I can't say that I'm totally pleased with the package, but I do know that it will help stimulate the economy. But if it does not, then there will be more to come," Pelosi said.

Boehner said the agreement "was not easy for the two of us and our respective caucuses."

"You know, many Americans believe that Washington is broken," the Ohio Republican said. "But I think this agreement and I hope that this agreement will show the American people that we can fix it and will serve to move along other bipartisan agreements that we can have in the future."

Paulson said he would work with the House and Senate to enact the package as soon as possible, because "speed is of the essence." But he also cautioned that "the work is far from over."

The Treasury Department has already been talking to the IRS about getting the checks out "as quickly as possible, recognizing that the tax filing season is ongoing," said Treasury spokesman Andrew DeSouza.

The rebates would phase out gradually for individuals whose income exceeds $75,000 and couples with incomes above $150,000, aides said. Individuals with incomes up to $87,000 and couples up to $174,000 would get partial rebates. The caps are higher for those with children

[bmcmull]

tax returns

I filed a 2005 return and the trustee took our refund check in the amount of $3800.00. It is my understanding that if it is under $2000.00 it will be sent to us, Is this correct ? I have held off on sending my 2006 return, and 2007 is comming up shortly. I was considering just using standard deductions and limiting the reurns to under $2000.00 and filing amended returns in 2009 when the BK is discharged..... In a way I feel this is cheating somewhat but our attorney was really shady and set our plan up way above what we could actually "realistacally" afford. At the time I felt I had no choice. Anyone with experience in dealing with the tax issue out there that can let me know where I stand on this issue. What about the money on the tax rebate coming this summer ??????? I am barely making it at this time and it is getting rougher. I only have 18 more payments left out of 60.....I wont drown but I could use the extra cash

[mesa777]

Dont think the trustee/court should be able to take this $$ away if it is supposed to be used to "help" the economy!!! What a joke!!!

[krielly]

I filed a 2005 return and the trustee took our refund check in the amount of $3800.00. It is my understanding that if it is under $2000.00 it will be sent to us, Is this correct ? I have held off on sending my 2006 return, and 2007 is comming up shortly. I was considering just using standard deductions and limiting the reurns to under $2000.00 and filing amended returns in 2009 when the BK is discharged..... In a way I feel this is cheating somewhat but our attorney was really shady and set our plan up way above what we could actually "realistacally" afford. At the time I felt I had no choice. Anyone with experience in dealing with the tax issue out there that can let me know where I stand on this issue. What about the money on the tax rebate coming this summer ??????? I am barely making it at this time and it is getting rougher. I only have 18 more payments left out of 60.....I wont drown but I could use the extra cash

I think you need to get "caught up" on filing your taxes (2006). We were informed that one of the conditions of our 13 is that we file "on time" tax returns, or our case could be dismissed. You definitely don't want that to happen with only 18 mos to go!
Adjusting your exemptions is only going to give the IRS your money, rather than the trustee. Speak to your lawyer about how much the trustee will keep. It seems as though each trustee is different (fortunately ours hasn't ever asked for any).
I don't know what percentage you are paying back to your unsecured creditors, but by taking your returns, it's possible that your plan could end early if it puts you at 100%.

Don't give the IRS your money if you can give it to the trustee and potentially get out of your 13 sooner.

[James H]

I'm married and in a chapter 13, my wife is not.

Wonder what is going to happen with that?

[bmcmull]

I think you need to get "caught up" on filing your taxes (2006). We were informed that one of the conditions of our 13 is that we file "on time" tax returns, or our case could be dismissed. You definitely don't want that to happen with only 18 mos to go!
Adjusting your exemptions is only going to give the IRS your money, rather than the trustee. Speak to your lawyer about how much the trustee will keep. It seems as though each trustee is different (fortunately ours hasn't ever asked for any).
I don't know what percentage you are paying back to your unsecured creditors, but by taking your returns, it's possible that your plan could end early if it puts you at 100%.

Don't give the IRS your money if you can give it to the trustee and potentially get out of your 13 sooner.

The money taken by the trustee in 2005 ($3800.00) was not applied to the plan. It was taken and given to the creditors but it did not adjust our plan to a shorter time. THey clasified it as extra money and I have not heard word on it since. I am going to file the 06 return in the next couple of day's and hope to see some of the money. As far as my attourney goes he SUCKS , forgive my language. I would never recomend him for anything.... I was thinking of filing standard deductions, thus getting a smaller return. Then go back in 09 and do ammended returns with itamized deductions...... I have not heard from our trustee on the tax issue since 05. Guess I better come up with an exuse for filing late..... Let me know if anyone out there has any more information regarding tax strategies or stories... Thank you krielly