We plan to file on Monday. Our lawyer has said that we are likely to lose part of our tax refund in April. The less cash we have in our bank accounts now, the more of our future tax refund we can exempt.
We currently have about $500 in our bank accounts. We already did the car's service, bought glasses, did dental work, etc. I am debating if there's a point where it looks bad to have spent down our account so much, like you are trying to get rid of money just to exempt more of the refund. I'm wondering if I can participate in my kid's school fundraiser, sign the kids up for another community ed class, pay my $20 library fine, just keep chiseling away at the $500. My husband worries about us getting through the week until Friday's payday, but I am less concerned - my kitchen is well stocked, and I know my parents would give us $50 for groceries or gas if we needed it to get through the week. But is there an amount I should not go under? Or should I open an IRA and put $400 in there? That feels like trying to get rid of assets as opposed to normal everyday spending, and I feel like it would be viewed with scrutiny.
Also, do I need to keep my Target receipts or is it a safe enough bet that the $150 I spent at Target is groceries for our family rather than purchasing luxury goods? Is there a way to get a copy of the receipt from Target if the trustee really wants to see what I bought? If we sometimes spent money on normal family type expenses that are not necessary - taking the kids to Dairy Queen, or ordering pizza - is that ever a problem?
THANK YOU for your help.
We currently have about $500 in our bank accounts. We already did the car's service, bought glasses, did dental work, etc. I am debating if there's a point where it looks bad to have spent down our account so much, like you are trying to get rid of money just to exempt more of the refund. I'm wondering if I can participate in my kid's school fundraiser, sign the kids up for another community ed class, pay my $20 library fine, just keep chiseling away at the $500. My husband worries about us getting through the week until Friday's payday, but I am less concerned - my kitchen is well stocked, and I know my parents would give us $50 for groceries or gas if we needed it to get through the week. But is there an amount I should not go under? Or should I open an IRA and put $400 in there? That feels like trying to get rid of assets as opposed to normal everyday spending, and I feel like it would be viewed with scrutiny.
Also, do I need to keep my Target receipts or is it a safe enough bet that the $150 I spent at Target is groceries for our family rather than purchasing luxury goods? Is there a way to get a copy of the receipt from Target if the trustee really wants to see what I bought? If we sometimes spent money on normal family type expenses that are not necessary - taking the kids to Dairy Queen, or ordering pizza - is that ever a problem?
THANK YOU for your help.
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