I want to file Chapter 7 soon. It's mainly credit card debt from around 10 years ago and two judgments. I'm unemployed and living at home. I wanted to know how to file my 2014 tax return. There's no income and I'm getting family support. Should I not file at all (I heard you have to to file for bk), or should I file with zero income, or file and count the family support as income? I'd rather not involve my family and wouldn't want to list them as a creditor. The family support doesn't have to be paid back, so it's not a loan. Unsure if it's counted as a gift then? Thanks
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How to file tax return?
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I the support you receive from your family is not a loan, required by a court order, required under a binding contract or in exchange for goods or services, then it is not income for tax purposes. Whether it should be included on your BK petition is a question for your attorney.
Filing BK does not create an obligation to file a tax return that you wouldn't otherwise be required to file. The BK code only requires that you provide a copy of a return you are required to file by law:
The following is from 11 U.S. Code § 521(e)
(2) (A)The debtor shall provide— (i)not later than 7 days before the date first set for the first meeting of creditors, to the trustee a copy of the Federal income tax return required under applicable law (or at the election of the debtor, a transcript of such return) for the most recent tax year ending immediately before the commencement of the case and for which a Federal income tax return was filed; and
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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This is a non-issue. If you did not work, had no income, and were not legally required to file a tax return, then none is needed. If your bankruptcy trustee requests tax return(s) for years in which you did not work, and thus did not file, then you simply provide a signed statement to that effect.
When I filed in 2013, I had wages in 2012, so I had filed a 2012 tax return, which I provided with my bankruptcy papers. I failed to find work in 2011, so I had no income, and thus did not file a tax return for that year. My trustee requested the tax return for 2011, so I provided the statement that I earned no income during that year and thus did not file, and he accepted that without question.
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JunkFood bankruptcy districts allow the debtor to file an affidavit asserting, under penalty of perjury, that the debtor was not required to file a tax return for the tax years in question.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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