Question about 2008 taxes

[debter08]

I spoke with an attorney about possibly filing. He said we should wait 6 months to be safe because of some balance transfers. Waiting 6 months will push us out to around January. This is the start of tax season. My question is will we have to surrender our tax refund. My hubby works and I stay home with the kids. We get a nice refund because of the earned income credit. Will they take it from us? If so, can we just wait to file our taxes later?

[sick of debt]

You have to file your tax returns in order to file.

We will be filing soon as well. We are due to get a return, my lawyer wants us to use it, put it in an IRA, pay ahead on somethings like my sons tuition, my daughters daycare, stock up on food etc.

I don't know what you usually get for a return or any specifics as to your situation. But, you can't have thousands of $$$ just sitting pretty in a bank account.


Have you discussed this with your attorney?
What chapter will you file? If it is 13, then i think they will take your return every year (is that correct?).

Best of luck to you.

[danaf]

yes, most likely they will want your tax return. But you can file your taxes, receive your tax return, and spend it on necessities before filing bk. You may have to wait a bit longer but the trustees don't usually go after it when it's already gone.

[BK2008]

OR- adjust your hubby's withholding so you are taking home more in your check, and you don't have such a large refund.

And if your entitled to EIC, have him see if he can't get that advanced into his paychecks too. He needs to see his HR dept for the paperwork.

[debter08]

I didn't know you can get the EIC sooner in your paycheck.

[BK2008]

Sure can....here's the IRS link:

http://www.irs.gov/newsroom/article/0,,id=172170,00.html

Download a form W5 and give that to your employer

[Help!]

Yep, the refund is a goner. Sorry.

[fltoo]

Adjust your withholding so you get no refund except for the credits.

No one, BK involved or not, should ever, never, ever, ever get a tax refund.

[sick of debt]

Good advice fltoo,


I should change my withholdings. Why let them hold my money?

[fltoo]

It surely is YOUR money that the IRS holds and no interest paid to boot!!!

[danaf]

ummm - before you adjust your W-4, be very very sure that it won't hurt you on the means test.

[ThreadsSnapping]

Easier said than done sometimes. Last year we had self-employment income, farm income and a casualty and theft business property loss. No way to figure out that tax mess in advance. We got an almost $4000 refund but just on W2 income it would have been a $54 refund. Next year we will owe and I don't even want to think about it.

TS

[iloveoliver]

What is exempt for one state may not be exempt for another. Since you are in Mass, you can use Federal exemptions. This can greatly affect your exemptions for the good. You really need to do need to review all this with your atty since he is familiar with the BK laws.

[kmb]

You really should see what your trustee requires. We are in Chp 13 and we have not been required to turn over our tax returns, tax refund (not that we got one this year) or stimulus payment to our trustee. Every state is different though, but it's certainly worth finding out!

[deafbroke]

Go over your exemptions with your attorney to see if he can protect your fed return under an exepmtion. I spent my state refund, federal refund, AND stimulus. trustee told me I had to pay it all back. $2500 total. Turns out I had room under exemtions to exempt it all. Hired an attorney to ammend my filing. Now I don't have to pay any back at all.
Check your exemptions.

Also if there isn't room, you might consider surrendering some things to make room under the exemptions for the return money. Say you get back 5K in fed refund. Surrender 5K worth of personell items if you have to to make room for the refund. Just an idea.

DB