Tax question (I feel we're going to get a lot more of these)

[anime-chicka]

Okay, so I'm in the 60 day club, yay! The trustee mentioned he wanted to see my tax return, so I'm wondering what would be the best way to go about this.

I can file:

1) married, filing jointly, with both of using our deductions. I suspect that if I file us like that, the entire return will be taken, despite the fact that the majority of the refund is actually hubby's

2) married, filing separately, giving hubby all the deductions. If I do that, I know that the refund for me will be small (say about 450-500 or so) and hubby's may or may not be larger, depending on what kind of penalties he has to pay. He cashed in a lot of stock over the course of the year.

Any suggestions for anyone who has filed and their spouse hasn't?

Thanks muchly.

[justbroke]

In a community property situation, I don't think the Trustee can touch a non-debtor spouse's portion of the return. At best, the Trustee may be able to get 50% of the tax return.

If it is a state of equitable distribution (not a community property state), then I think the Trustee can only get at as much of the tax return as you contributed to the income.

So if hubby made $70K and you made $30K, then the Trustee could get to 30% of the return in an equitable distribution State.

At least that's how I interpret the various laws.

[fathergolf]

One option you always have is to make your return as low as possible and then amend it the following year. You have 3 years to go back and amend a return.

[anime-chicka]

Interesting. MO is not a community property state, so I'm guessing it might just be easier to file jointly and let the trustee take what he wants, if anything. I've always done the jointly and separately scenario to see what the best outcome is. I'll be interested to see what others' opinions are on this subject.

Thanks for the replies

[justbroke]

I'll know next year (in about February), how my Trustee treats the non-debtor spouse's (non-filing spouse) portion of a tax return in Florida.

Florida is equitable, but has this tenancy by the entireties... should be fun.