tax refunds on chapter 13 plan

[okane]

Ok, seems like most chapter 13 plan is a length of about making monthly pmts for about 5 years, does that mean they take your tax refunds for all 5 yrs?

[klandsb]

I have not filed my Chapter 13 yet and can only give u an answer based on what I have read on this forum. It seems some trusteee dont want it and others want it if its over a certain amount. Lets see what some others answer as well

[ccfriend]

I have to pay anything each year over $1602.

[jherron]

I don't have to submit my returns or refunds to my trustee. It all depends on your district as to whether or not you have to turn over your refunds. I would contact your attorney just to verify what needs to be done. I've heard of cases being dismissed because the returns/refunds were submitted.

[dyrstr8s]

The districts seem to be all over the place on this one. It would be nice if there was some consistency, I cringe everytime I read about someone getting to keep their refunds.
I'm in the Southern Iowa district, in a 48% to unsecured plan, and my trustee wants everything. I got a $4 refund from federal and had to turn it over, $880 from the state.
I don't see me looking too hard for many extra deductions or credits for the next 4 years!

[deerme]

I had to turn over 1/2 of my net tax returns...state and federal combined. Yes, it really sucked!

[Chicken123]

DH and I are in a 5yr payback on a Chapter 13, and we have to turn over anything over $1800.00 of our tax refunds. We also were told that we have to paper file (no e-filing) and turn copies into our attorney who will then forward them to our trustee.

[lrprn]

okane, you need to ask your lawyer what your own trustee does with tax refunds during Ch 13s in your local court.

As others have already shared, there's no consistency regarding tax refunds between Ch 13 trustees. Some take everything, some take some (ours takes anything over $2K), and some take none.

Of course, the best thing to do is to adjust your withholdings to get as little refund as possible. That way if your trustee is one that takes everything, you won't take such a hit. Uncle Sam is a horrible savings account anyway.

[flower04]

We have to turn it all over.