Tax Refund

[TomBrady]

Okay filed my taxes Late Jan and I am getting a 4700 tax refund from Federal (178) state. I am in Colorado and I am trying to figure out what exactly if anything of this refund wil be exempt. My state does not have a "wild card" exemption that can be used, however it does say that 100% of any federal or state tax earned income credit. 3699 of the refund comes from a child tax credit does anybody know if these are the same thing? Or am I just being hopeful...

[phoenyx]

Okay filed my taxes Late Jan and I am getting a 4700 tax refund from Federal (178) state. I am in Colorado and I am trying to figure out what exactly if anything of this refund wil be exempt. My state does not have a "wild card" exemption that can be used, however it does say that 100% of any federal or state tax earned income credit. 3699 of the refund comes from a child tax credit does anybody know if these are the same thing? Or am I just being hopeful...

I would recommend talking to a bankruptcy attorney to see specifically what you can do to hold onto that refund.

The earned income tax credit is something totally different, that it doesn't sound like you have claimed from your post. The EITC is a credit that substantially reduces or even eliminates taxes that low-income people pay.

I live in Michigan, so I am unfamiliar with Colorado's exemptions. I looked through them, however, and didn't see anything that stuck out as something you could use. It also appears to me that Colorado doesn't allow you to use the federal exemptions instead, which would potentially provide you with an exemption on the refund if your homestead amount was low.

Again, I recommend talking to a bankruptcy attorney about this so you don't run into any problems. The only way you might be able to "keep" the refund is to spend it on ordinary expenses before the bankruptcy, or convert it into exempt assets. A bankruptcy attorney will be able to give you details on what you can do with it and not run into problems for your specific area. No matter what you do, don't spend it on anything luxurious or "fun", and keep full records of where the money goes.