Soon to file a 13 Tax question

[thornyside]

I'm recently married (in September of 2011) and will be filing my taxes for the first time as a married person this year (for 2011). I am also going to be filing Chapter 13 soon (just waiting on some docs for the atty).

My basic question is, should my wife and I still file our 2011 taxes jointly or is there a reason to file separately? She is not part of the Chapter 13. We have a prenup that keeps my debts separate as well as her expenses related to her child (child support since he lives with his dad)

Thanks

[NoMoreCards]

I wonder if a prenup matters for debt in a community property state?

[chicagoed195]

In most cases, a joint tax return will provide a better result than returns filed using the married filing separate status. You will need to run the numbers both ways to determine which method produces the better results. There are non tax reasons to file separate returns, if one spouse doesn't want to have the legal responsibility for any items that might be appearing on the other person's tax return.

I don't think there are any reasons to file or not file separate returns solely due to one person filing a Chapter 13, but I will defer to others who might have more knowledge.

[Arbyone]

Keep in mind the trustee will be looking for the 2011 Tax Refund Check, if any, to be forwarded to his office as part of you chap 13 repayment plan. You should run it past your lawyer first before filing your taxes.
Arbyone

[thornyside]

Well, i did ask the atty. His reply was that he doesn't give tax advise. Maybe he didn't understand the question. At any rate, there won't be a refund. I will owe for 2011 just as I have for the previous 2 years. That will be added to my current IRS payment plan.

But in general, does it matter to Trustee how I file my taxes?

[lrprn]

At any rate, there won't be a refund. I will owe for 2011 just as I have for the previous 2 years. That will be added to my current IRS payment plan.

If you plan to file 13 soon, then you need to start looking ahead to ensure you don't owe money to Uncle Sam during your 13. Paying a big tax bill is quite a challenge when the vast majority of your disposable income is going towards your plan payment. Not being able to pay taxes during a 13 is one of the reasons many Ch 13 plans fail.

But in general, does it matter to Trustee how I file my taxes?

In a community property state like CA when one spouse files alone, even with a prenup it could matter. Arrange to talk with a tax lawyer to figure this out for sure *BEFORE* you file for 2011.