Another tax refund question

[jkim0907]

Hey all...thanks for all the great information on this site.

Question as 2012 is coming to a close about tax refunds...

I'm a year into a CH13 which included tax debt... about 80% of the tax debt is considered priority and is going to be paid in full.

My question is, I'm expecting a refund for my 2012 tax year. I talked to my attorney and he said that the Trustee here in Chicago that I've been assigned to only requires anything above and beyond $2,500.00. I dont believe my refund will be over that. My question is, since I am paying tax debts as part of my current CH13, does that mean, that I wouldn't even get the refund and the IRS will be keeping those monies?

Reason I'm asking is that I've heard it both ways. Some say that the IRS will keep the refund while I've also heard that they cannot hold my refund even though I have tax debt because of the "automatic stay"... would like the real answer to this...

Last year, when I filed my 2011 taxes, I actually did get a refund of about $1000 bucks. I filed online and I requested the refund be direct deposited into my bank...knowing that I owed, I just figured it was a formality on the website (turbo tax) to offer the option to have my refund direct deposited. But, about a week later, I actually did get the refund. I talked to my attorney and I told him I got a refund. He told me to hold on to it for about a month and if the Trustee doesnt ask for it (which he didnt), that I would be good to go.

I'm figuring it's the same scenario for me for this year, but wanted to make sure before I go on a "spending" spree. Not really... but you know what I mean.

Thanks all.

[mrswilson]

I owed IRS 5,000 and paid them thru my chapter 13 plan and I got my tax refund every year
I think you good to go

this is just my story hope it helps

[BeckyK]

We asked our attorney about tax refunds several times since I did see lots of posts about it. He gave me a very strange look and pretty much said that we would get to keep our refund if we had one. Since this is our first year, I have no idea what will happen but basically if we get one, I'm going to sit on it for a bit to see if the trustee asks for it or not. I'm going to lean towards not at the moment since the attorney has had way more dealings with the trustee than I have.

We don't have tax debt though, so that does make things more confusing. It seems to work pretty much so far, as if the BK is just a monthly payment and it is basically set in stone unless told otherwise (or we have some change in circumstance)...doesn't go up/doesn't go down.