Tax return question

[jkim0907]

So, I had a question. In my confirmed CH13 plan, it states the following:

"The Debtor shall tender to the Trustee the amount of any tax refund in excess of $1200 each year within 7 days of reciept of tax refund. Refunds must be received by the Trustee by June 15th of each year".

So does this statement mean anything under the $1200 threshold for my refund is what I can keep? Only reason I'm asking is because I just did a tax refund estimator calculator on one of the online sites and it states that I should be due a refund of about $1250 bucks. Does that mean I have to turn in the entire $1250 or just $50 (since $50 is the excess amount of the $1200 threshold)? Maybe this is a dumb question (probably is).

Just dont want to get in trouble. Please advise!! Thanks guys (and gals).

[LadyInTheRed]

Better safe than sorry. I think you are reading it correctly.

"the amount of any tax refund in excess of $1200 each year"

If you get a $1250 refund, you have to send $50 to the trustee.

[jkim0907]

Thanks LadyInTheREd. That's what I figured. So that's good news! My W2's can't come soon enough. 15 months in so far, 45 more months to go till I'm debt free.

[ld2366eh]

I have a question regarding the terminology. If the OP had his confirmation worded in this matter "the amount of any tax refund in excess of $1200 each year shall be turned over to the trustee" and past tax returns (prior to Chapter 13) yielded a refund each year, can the OP change his exemptions after he's been confirmed so that his refund is under $1200 going forward? I'm just curious how that works...

[andy158]

Our plan states that we turn over anything over $1,500 refund.

[LadyInTheRed]

I have a question regarding the terminology. If the OP had his confirmation worded in this matter "the amount of any tax refund in excess of $1200 each year shall be turned over to the trustee" and past tax returns (prior to Chapter 13) yielded a refund each year, can the OP change his exemptions after he's been confirmed so that his refund is under $1200 going forward? I'm just curious how that works...

Not without first checking with his attorney.

[ValleYum]

FYI: Word is that even if you e-file today, the IRS is not going to begin processing the returns until January 30th.

http://www.crosslinktax.com/support/tax_updates/IRS-Delays-Start-of-the-2013-Tax-Season.asp