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Earned Income Credit tax refund....Can I keep it?

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    Earned Income Credit tax refund....Can I keep it?

    Just finished my first year of a 4 year plan in California. I already had my plan moddified once due to lower income and time off for disability pay etc..This is the first year that I filed taxes within the plan. I claimed 10 exemptions and I only withheld about $200 total in federal taxes. Due to the earned income credits my federal return is $3023 and the state is $103.
    Is there any chance I can keep any portion of this?
    Last edited by vicmost; 04-19-2012, 11:05 PM.
    Don't take life too seriously, you won't get out alive.

    #2
    There's a chance. It depends on your plan and your trustee. This is one of those questions that is best asked of your attorney. Might as well get something out of that fee.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

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      #3
      It depends on your state's exemptions.

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        #4
        Thanks, I will call him today and find out.
        Don't take life too seriously, you won't get out alive.

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          #5
          Originally posted by HHM View Post
          It depends on your state's exemptions.
          HHM, what do exemptions have to do with it? This person is 4 years into a Chap 13 plan. It doesn't sound like it was an asset at the time of filing.
          LadyInTheRed is in the black!
          Filed Chap 13 April 2010. Discharged May 2015.
          $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

          Comment


            #6
            LIRT, post petition income, given that is what funds the plan, remains part of the estate, as such, (arguably) any subsequent tax refund would remain part of estate unless exempt.

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              #7
              Spoke with my attorney and I was told I could petition my trustee for some of the tax refund if it was for needed expenses (hospital bill, etc..). However, I would have to pay the money back through higher payments and/or extended payments.
              Don't take life too seriously, you won't get out alive.

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                #8
                I sent the funds to the Trustee. My wife is not included in the Chapter 13 (I filed as an idividual), wouldn't she be entitled to some portion of the refund?
                Don't take life too seriously, you won't get out alive.

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