Federal/State Taxes Due This Year and Ch13 Later This Year

[catleg]

OK, so I'm doing my taxes and I'm going to owe the Feds about 2k and the state about 1k. Should I pay these with cash on hand or can I roll them into my chapter 13 to be filed probably later this year?

[lrprn]

OK, so I'm doing my taxes and I'm going to owe the Feds about 2k and the state about 1k. Should I pay these with cash on hand or can I roll them into my chapter 13 to be filed probably later this year?

The best answer depends on your state bk exemptions.

If you can protect the cash, keep it on hand and roll the taxes into your 13.

If you can't protect the cash, pay the taxes with it to get your cash amount down to what you can protect. If there are still taxes left to pay after that, roll them into your 13.

Just be sure to file your taxes on time (by tomorrow night at midnight). You don't need to be dealing with late filing penalties on top of everything else.

Start looking at your tax withholdings now and adjust your numbers so you will get a small return back for 2009 next year. You'll be in a 13 and will have to pay any 2009 taxes you owe since they were incurred after you filed and you won't have much (if any) disposable income saved up to pay $3K again.