tax returns

[aachudneymiles]

Do I need to claim my 2007 year tax return on my bk now in schedule c under personal property. I am asking because I read a thread saying we should. I am a pregnant mother of 2 (3) kids and I get back every year 6000 or a little more. I dont want it to be taken by trustee i need it for the kids, new baby and a car. Hope I didnt do this wrong thnx looking at laws for expemtion but dont see anything about it.

[aachudneymiles]

I found a answer for the record

Your income tax refund is just giving you back money that you already earned but 'loaned' to the government to use for a year at no interest. The refund amount is already included in your gross income for that year. If the refund counted as income, then your gross income for that year would increase accordingly.

Your tax refund is not income and doesn't count as income on the Means Test.

wondering if it can be a asset though? anyone had their Income tax taking by trustee? I have heard of it in chapter 13 but not soo much in 7..anyone?

[keepmine]

Tax refunds are considered assets and yes, many members have had all or part of the refund claimed by the trustee for the bk estate. A lot depnds on the pratices of trustees in your district. Ask your lawyer how these things are handled in your district.

[JollyGG]

Tax refunds are considered assets and yes, many members have had all or part of the refund claimed by the trustee for the bk estate. A lot depnds on the pratices of trustees in your district. Ask your lawyer how these things are handled in your district.

Agreed. You may be able to cover the exempt amount with an exemption. However, 6000 is alot for any exemption system I know of. Can you delay your filing until after you return is received and spent on necessary expenses?

[kiddles]

What state are you in? If you don't have much equity in your home (or are a renter), alot of state allow you to use 1/2 the homestead exemption as a "wildcard" exemption, which would be enough to cover your tax return.

[aachudneymiles]

ok first I cant really delay.. I am scared of garnishmenton this apartment that sued us.,.I do know it was continued until Jan2008 but they already have a judgement against us... i have been delaying this week.. I finished my bk papaer work 1 week ago. I really want to delay to after tax time when i have already spend the money ... but if garnishment happened I would have more research and work to do..


Now to the wild card I am in VA Eastern -I have a willd card here in eastern VA I am a renter and was very confused by the wild card it said something like 10000 unused portion of homestead or personal property exemption i was thinking it was for a person who owned a home.. Filing pro se so can ask a lawyer nothing.. you know I could do some more consult and ask about tax return being taken..

Man I need that 6000 I am letting both cars go and have another baby on the way...

[aachudneymiles]

ok just spoke with a lawyer, in my state there is a exemption for 10000 plus ... and can be used on tax refund,,, so my plan and guys if it sound like a mistake please tell me.. I am going to file without including my refund as exemption... I will wait until the 341 and if trustee says a peap about tax refund I will amed my bk and add in expemtion. Easy as pie. oh yeah and I will be praying trustee lets me pass go and collect my 6 grand.. thanks everyone

[ameliabedilia]

Good idea, at least to me .
Now you need to change your exemptions for next year and quit letting the government have your money all year at 0% interest! You could have an extra $400 a month!

[aachudneymiles]

Good idea, at least to me .
Now you need to change your exemptions for next year and quit letting the government have your money all year at 0% interest! You could have an extra $400 a month!

I going to see if we can do that hubby military .. never knew we could...but I remember changing my expemtions when I was 18 and i ended up owing the irs... so if i mite ask what do you think should be claimed for a family of 4 going on 5 only one working?
so I can research this ... Thank you soo mcuh

[ameliabedilia]

Anytime we have made less than $70000 per year we have claimed 5 exemptions and have always gotten between $600 and $900 back. I think there are calculators online that will help you figure out the dollar amounts.

[JollyGG]

I think there are calculators online that will help you figure out the dollar amounts.

http://www.irs.gov/individuals/article/0,,id=96196,00.html

[aachudneymiles]

Anytime we have made less than $70000 per year we have claimed 5 exemptions and have always gotten between $600 and $900 back. I think there are calculators online that will help you figure out the dollar amounts.

Thanx guys. I will change that

[aachudneymiles]

http://www.irs.gov/individuals/artic...=96196,00.html

jolly what percent of your tax return did trustee take?

[JollyGG]

jolly what percent of your tax return did trustee take?

Everything I couldn't cover with an exemption. I got about 2500 back and was able to exempt around 2000 of it. She took the rest. But we kept enought to buy a vehicle we needed to get. So were relatively happy.

We hadn't expected our return to be quite that big and hadn't expected our trustee to go after earned but unpaid income. Which we had to use some of our wildcard exemption we had planned to use for the return to cover. Otherwise I would have changed my exemptions as much as I could. Though I don't know how much difference it would have made since I only had three more paychecks in the year after we filed (I get paid montly).

[aachudneymiles]

Everything I couldn't cover with an exemption. I got about 2500 back and was able to exempt around 2000 of it. She took the rest. But we kept enought to buy a vehicle we needed to get. So were relatively happy.

jolly what state are you in and what exemption did you use? cause I am over here scared and the same lawyer that told me this exemption will cover my return is saying dont not do it pr se it will be taken... soo scared did you file pro se?

The lawyer told me to use homestead which is also a wildcard..
Thnx

[quote=aachudneymiles;119826]ok just spoke with a lawyer, in my state there is a exemption for 10000 plus ... and can be used on tax refund,,, so my plan and guys if it sound like a mistake please tell me.. I am going to file without including my refund as exemption... I will wait until the 341 and if trustee says a peap about tax refund I will amed my bk and add in expemtion. Easy as pie. oh yeah and I will be praying trustee lets me pass go and collect my 6 grand.. thanks everyone[/QU
now lawyer says

Based on your questions, let me just remind you that you need to timely file a homestead deed with the clerk of your local circuit court in order to claim the 34-4 exemption. Best practice is to list the values of each asset being exempted on the homestead deed as $1.00. Once you claim the assets as exempt with a $1 value, you can always amend the homestead deed to increase the values, but after the deadline (5 days after the 341 meeting) you cannot add assets that you want to claim as exempt. If you don't know the value of your 2007 tax refund (and how could you at this point?), schedule it as unknown, and exempt it on the homestead deed at $1.00. If the trustee insists, you can then increase the claimed amount. Do that separately for your federal and state refunds