Is oweing taxes a problem?

[dmc-2008]

I checked my paperwork today because I must send a copy of my taxes to the trustee. This year there is no refund. Last year I owed fed and had a state refund. When I looked at the paper work today it said try to get as close to zero as possible. It said do not owe any taxes. Well, I owed and paid this year! It looks like I would owe next year too but I have adjusted so I will break even. Just afraid they might dismiss because I ended up owing this year. It's been hard to figure out! ;-(

[spidge]

I still owe a little from after the first year I filed and the IRS and attorney told me to send what I can when I can. If the IRS already has a claim in your 13 they will not enter into a payment plan as the 13 counts for one.

PM will be sent.

[dmc-2008]

Thanks Spidge, I don't owe any taxes from last year. Just this year and I paid that too. Just tring to balance out but finding it not easy to do. Hope I don't get in trouble for having to pay tax.

[spidge]

Last year my small refund was applied to the post petition taxes and the trustee who requires copies of my taxes said nothing. You're golden.

[dmc-2008]

Thank you! I just hope she realizes that I saved in order to pay them! I shop Payless and thrift stores as well as the 99 cent store in order to have that payment! Oh and this year I am sending in a little extra so next year I won't have to pay! Ugh! Thanks!!!!

[LadyInTheRed]

It sounds like you paid your taxes on time. The fact that you had money to pay them will not be an issue. It shows you are budgeting to pay your expenses. You are allowed to save cash during your Chap 13.

[andy158]

We owe federal $1,700 this year and get a state refund of $400. Can't claim kids anymore because they are too old. Had additional tax taken out, but wasn't enough. One more adjustment and we should break even next year.

Have enough in savings to pay the tax bill thanks to creative budgeting

[drew999999]

LadyInTheRed is right (for my case anyways). We've mostly had offsetting balance due/refunds between federal and state over the past few years. Every year if there is a negative combination (More due than returned) the trustee has called it good. If there has been a surplus (more returned than owed), we have send a money order in for that amount along with our taxes. Some years were had swings as large as $2k with no objections from the trustee. With the crazy tax laws that we have here in the US, it's almost impossible to get to zero, but it looks like you're on the right track.

[spidge]

LadyInTheRed is right (for my case anyways). We've mostly had offsetting balance due/refunds between federal and state over the past few years. Every year if there is a negative combination (More due than returned) the trustee has called it good. If there has been a surplus (more returned than owed), we have send a money order in for that amount along with our taxes. Some years were had swings as large as $2k with no objections from the trustee. With the crazy tax laws that we have here in the US, it's almost impossible to get to zero, but it looks like you're on the right track.

How did you determine that you could just send in the difference? Attorney? Trustee?

[dmc-2008]

Thank you! I called my atty today. I figured it was a good time to check in. He said don't worry it is ok to owe. I will try to break even next year. Actually when I finished my taxes they gave me a rundown of what I will owe next year. So instead of playing with deductions I just added a set amount and added that out of my check each month. They did bill me for interest and penalty of ten bucks!!!! Uncle Sam is getting his!

It is tight this month for sure. I couldn't save it all but next check will cover some.

[spidge]

Just got off the phone with my attorneys office and was told that I can use the state refund to offset the federal taxes owed. It helps, but still a ways to go on the balance. Kicking myself for not making that call a couple years ago.

[dmc-2008]

Just got off the phone with my attorneys office and was told that I can use the state refund to offset the federal taxes owed. It helps, but still a ways to go on the balance. Kicking myself for not making that call a couple years ago.

I tried that last year and atty told me no go!

[spidge]

I tried that last year and atty told me no go!

Oh boy. I hope she is not giving me bad info.