Chapter 7: Is my tax refund considered income and how do I reflect that?

[kberly69]

I sincerely apologize if this has been asked and answered but I could not find it anywhere on the forum or even doing an internet search. I am currently working on filing for Chapter 7 pro-se. My situation is pretty straightforward- no businesses, no mortgage, car is old and paid for, exemptions should cover me, the means test does not apply, etc.
I don't know what to do with my tax refund as far as filling out the income forms. I received some in February and some in April and have received a refund of around $3-4K for the past couple years. For Form 122A-1 Statement of Your Current Income, if I put what I received in April, it makes it appear that I make a whole lot of money. For the 6 month period I have the same problem. Do I average it out and calculate per month? Do I even include it? I cannot seem to find a space that is appropriate- is it "other income"? I know I have to answer for it and that's fine. I didn't spend it on anything fun and I am still enough under the median to not have to go to Chapter 13. I just want to do it right. Help!

[justbroke]

What most practicing attorneys and even Pro Se debtors do, is to average the "refund" amount over the last 2 years. Then divide that yearly average by 12 to get a monthly average amount. You add this back to your income to reach your true income after taxes.

Do you include it? Certainly, because the Trustee is going to do the same exact thing (using your last tax return to determine if you had a refund and then taking that refund and dividing it by 12... and subsequently adding it back into your net income).

[kberly69]

Thank you, thank you!!! I figured such but could not find anything clear-cut on the matter. Back to the calculator!