Tax Return

[BKQuestion]

We expect a $6,800 tax return this year. I have run all the numbers and came up to this amount and its pretty accurate. only roughly $550 is taxes being returned. the other is from EIC/Child Tax Credits.

My question relates to the trustee being able to get their hands on it. I am told they cant only get their hands on the REFUND not the CREDIT. eg the taxes we overpaid not the EIC/Child Tax Credits?

Any one know if that is the care or not? Also is it usual/unusual/likely/unlikely that the trustee will know we filed and are receiving a refund? Is this an electronic system that checks within 6mos. at certain intervals on filing/refund status?

[dogbone33]

We would get about 7-8k back for our kids and eic. They will take it no matter what. Our lawyer told us not to count on getting anything back. Did you file yet? If you didn't hold off and try to spend it on necessities, then file. I agree that they should not be able to take your child tax credit or the eic, but what can ya do? They will know you are getting a refund back, I wouldn't try to hide it.

[BKQuestion]

Filed already, talked to the lawyer our EIC/Child Tax credits in the state of florida are untouchable as per FSS. Florida state stautes. So i am happy for that. Found out they can only touch like 550$ worth if they want to, sometimes they dont. All depends how they feel. I am told once the case is discharged and closed (these are 2 separate things.. discharged = closed) then they cant attach themselves to the bk estate tax return.

What are you referring to spend it on needed items/necessities?

[TJR70]

I heard it also depends on what district you live in. My lawyer told me I will be keeping everything including my income tax return which is only child tax credit. But I will find out on 3/10/09 when i face the trustee face to face. Then I will really know I guess..

[BKQuestion]

why would you ever intereact again with the trustee after the 321a. Also the district has no bearing on the state's exemption statutes.

[eddiep]

if you get your tax return back before you file, does this count as "income" on the means test?
Does everything count as income, like we sold motorcycle, $500 gift at xmas, $1900 loan from parents?

[eddiep]

OMG! I am sorry! I must have Alzheimer’s! I have already asked this question and got many responses, I guess I wanted a different answer! Sorry!

[BrokeAzzez]

Our trustee is taking everything up till the day we filed....even my child tax credit. My lawyer doesn't seem to care too much about this issue at all, how can I find out if I qualify to keep my portion of the child tax credit?

[BrokeAzzez]

Can they take your refund if you file after your case is closed? My SIL just got discharged and closed yesterday in a no asset case however she hasn't filed her taxes yet and will receive a considerable return. Will they come back for it?

[BKGoddess]

When did you file and when is your 341?

I filed in December and provided 2007 taxes, had my 341 yesterday and the trustee did not even ask for my 2008 taxes.

[BrokeAzzez]

I filed in Oct and my 341 was in Nov. she told me in the 341 I had to provide my 2008 taxes to her

[BKGoddess]

Maybe it just depends on the trustee. Mine was very nice. She asked me a few questions (if I was getting any inheritance and if I was holding a winning lottery ticket---ugh, if I was, I wouldn't even show up for the meeting, I would withdraw my petition and pay my debt) and that was it.

I was the only pro se on the docket.

[BrokeAzzez]

Our trustee was mean....we heard bad things about her. But how can it be a personal preference to take your tax return or not??

[BKGoddess]

I don't think it is a "personal preference". It probably is a case by case decision. She did ask the guy before me if he filed his 2008 taxes (he said no)but did not ask him to send her the documents after filing.

The thing to remember is---one can always wait until April 15th (or even later with extention) to file which will be too late to do anything anyway.

I just don't know really.

[quietmaria]

Not in Missouri.......

In Missouri, they will take all but what your lawyer exempts. My refund this year is $5856 and ALL of it is a tax credit except for about $1000. The trustee is taking $2675. It is based on your states exemption laws.