Taxes

[dmc-2008]

When a trustee takes your taxes they apply it toward debt repay correct? Does that take time off your plan? Last question can you see that online?

[justbroke]

Not typically.

In a Chapter 13, any tax refund received and turned over to the Trustee is treated as additional disposable income (DMI). The plan base is typically increased to add the amount of the tax refund. You should be able to see all plan payments on 13DataCenter as well as your plan base. (If you're in a 70% - 100% plan, it may be treated a little differently.)

[dmc-2008]

Thank you.

[justbroke]

You're welcome. The Trustee will treat it as additional DMI and distribute to the unsecured creditors. I have not seen, in any plan that is not a 100% plan, where a surrendered tax refund would reduce the plan duration. In some cases, you may be able to ask the Trustee to exit the plan early if the original "plan base" is paid early. However, those are extremely rare these days.

[occi]

I've been wondering about this, I'm in Oregon and have to turn over all Fed. and State refunds to the Trustee, which so far is around $4k. I have about 24 more
payments to go ( out of 60). My plan base shows 0.00 with a 40% payback to unsecureds on 13Datacenter. So, near the end of 60 payments the Trustee will
pay the unsecureds a little extra due to the tax refunds? and the plan won't end early once all secureds are paid the 40%. Thanks for any responses in advance.
I find this site soooo helpful. Thank you.

[LadyInTheRed]

So, near the end of 60 payments the Trustee will
pay the unsecureds a little extra due to the tax refunds? and the plan won't end early once all secureds are paid the 40%.

Correct. The 40% is an estimate based on the creditors listed in your petition and the amount of the plan payment.

[dmc-2008]

More ? About taxes. How do you ensure you get the least amount refunded? I do my own and i have only concentrated on the opposite! I dont want to owe though!

[justbroke]

There is no way to guarantee what you'll owe or be refunded. The only thing you can do is "estimate" what you need to do in order to get it as close to $0 as possible. There are not real suggestions. If you are salaried it is a little easier since your salary doesn't fluctuate.