Will the chp 13 trustee get my federal tax refund?

[todowd]

I have been in a Chapter 13 bankruptcy for 2 years now. Last year when I filed my income tax return I received it from the IRS. The refund was $1500. My calculated refund this year is $2789. I thought I read some where that if your tax refund is over $2500 you have to turn it over the the Trustee. Does anyone know the rule on this? Do I have to turn it all over to the Trustee or just a portion? I read on a website earlier today that Chapter 13 bankruptcies to not have to turn over their refunds but the site was discussing Michigan. I just would like to know the facts concerning Chapter 13 Bankruptcies and federal income tax refunds. I want to do the correct thing but I need any extra funds I can get.

Thanks,
TO

[bkfiler]

well, you should call your attorney and ask to be honest.

it is my understanding that since you are in a chapter 13 then that goes to the trustee. i still have a problem with the trustee getting anything though lol but that is a different story. the problem is you have been making all your required payments so why should he get more.

unless someone knows here i would ask the attorney, but i would hesitate to ask the trustee. i get the feeling he would say yes too quick.

just wondering, do you have to refile your finances every year so they can be reviewed?

[todowd]

Thanks for your reply. No, I do not have to refile my finances every year. And my husband just changed jobs and we were not asked to refile our finances. Go figure.

TO

[13inOR]

We are in a chapter 13 and were told from the start that all tax refunds have to be surrendered to the trustee. They also said other sums of money over
$2500 from ANY source must be surrendered. But we got the impression that
it would be tax refunds of any amount, but it may depend on your trustee.
Our plan is %100 for 29 months, so either way its all being paid back, and we were still told this. Also, if we get a raise that is over 12% that has to be reported as well so they can modify and make us pay more if need be, per month. We are in Oregon.

[intensity_too]

The way ours works is we keep the first $2000 of our tax return and the rest goes to our trustee.

We filed in Kansas so it may differ from state to state.

I agree that you should call your attorney.

[FDNYLadder124]

We were told last year right off the start that the IRS would send the first $1500 to us, and the rest to the ch 13 trustee.
Our refund is $2000, so we'll wait and see if that rings true.
Nevermind my leaking roof or $790 in repairs I need to my pos truck.

TonkaTruck

[Armmick9]

Here is what my Attorney told us..

We Filed in MN...

No my attorney said..."You filed under the federal exemptions and are under a 13. If the trustee wanted a copy of your tax return or was going to have that go towards your debt she would have let us know in our 341 meeting".

[Jman30]

We Filed in MN...

No my attorney said..."You filed under the federal exemptions and are under a 13. If the trustee wanted a copy of your tax return or was going to have that go towards your debt she would have let us know in our 341 meeting".

Mine was the same way and I filed in Ohio. My attorney said that unless the Trustee specifically said in the 341 meeting that they wanted our tax returns, then we didn't have to worry. The Trustee never said anything and the last two years, I have gotten my federal and state tax refunds.

[t45032]

i am in chicago i file bk 13 can trustee take my tax refund direct from irs.

[t45032]

I file bk 13 only credit card and one use car my lawyer told me i have to pay my tax refund i would like to know trustee will take direct from IRS or i send when i recieved from IRS.I am in chicgo please update.

[dyrstr8s]

The policy varies from district to district. It should be spelled out in paperwork from your trustee's office. If you can't find it, definitely check with your attorney.
For what it's worth, in Iowa Southern I have to submit copies of tax returns and surrender all refunds.

[debtinohio]

Can't you just adjust your withholdings in the future to prevent a refund?

[dyrstr8s]

Can't you just adjust your withholdings in the future to prevent a refund?

I have my federal exemptions just right, had a $4 refund last year. Felt kind of smug giving it to the trustee, "here have this $4 if you feel you really need it, big man!".
Unfortunately, Iowa tax law seems bizarre. I always seem to get about a thousand dollars refunded no matter what. I modeled it on my employer's payroll website (you can enter different exemptions and it will calculate your paycheck) but needed to claim over 200 exemptions to get it to withhold $40 less each paycheck! Then it wouldn't let me claim that many. I ought to try again to see how many it will allow me to claim.

[debtinohio]

I have my federal exemptions just right, had a $4 refund last year. Felt kind of smug giving it to the trustee, "here have this $4 if you feel you really need it, big man!".
Unfortunately, Iowa tax law seems bizarre. I always seem to get about a thousand dollars refunded no matter what. I modeled it on my employer's payroll website (you can enter different exemptions and it will calculate your paycheck) but needed to claim over 200 exemptions to get it to withhold $40 less each paycheck! Then it wouldn't let me claim that many. I ought to try again to see how many it will allow me to claim.

What a pain!

[bmcmull]

I can tell you from experience that you need to talk with your atty and be prepared for him to tell you he does not know. The trusth is that all trustees are different. even ones in the same state as yours. My report said anything over 2k was reviewed, but with a reason you could keep it. Anyting over 4K was automatically kept... i had a $3200.00 return my 1st year and they kept all of it, not just the portion over 2k. Never mind that it was bigger because I was paynig 15k year in child care that was not mentioned in my stress test.. Good luck and keep the returns under 2k to be safe.