spending tax refund

[okiemom2008]

We are having a hard time trying to find things to spend it on. We were told we go open a traditional IRA with the money if we wanted...anyone know if this is ok?

We stocked up on diapers and clothing but still have money leftover.

Can we buy something like a tent for camping, swimming gear, microwave ect.? Also can we just put it in a new traditional IRA?

We are filing next week.

[okiemom2008]

Also, my husband has wanted a lifetime fishing license since i met him. Would this raise eyebrows?

[momof3b1g]

How much do you have left and what have you spent it on so far?

Acceptable things are...

Car repairs
dental/medical exams
eye exams and glasses
Food
home repair

[okiemom2008]

How much do you have left and what have you spent it on so far?

Acceptable things are...

Car repairs
dental/medical exams
eye exams and glasses
Food
home repair

We had 4500 and spent it on

groceries 550
lawyer 1900
register vehicle 200
hotel to see family 90
rent 700


So we have about 900 left-We are moving soon but not until after the bk so I wanted to buy a visa gift card so we could use the money for the move but thought that might be pushing it. We really wanted to get new camping gear since we are so into the outdoors but not big deal if we cannot.

[mintz]

They can not touch an IRA and you can draw from it any time you want BUT you will have a penalty like 20% to uncle sam. If you go this route put it so you have your cash available.

[Trixie007]

I think you could safely spend more on groceries, toiletries, cleaning supplies. We have a household of four and spent almost 2k total this month for regular groc & stocking up. Also, our microwave died this week, so we bought an inexpensive new one.

[okiemom2008]

I think you could safely spend more on groceries, toiletries, cleaning supplies. We have a household of four and spent almost 2k total this month for regular groc & stocking up. Also, our microwave died this week, so we bought an inexpensive new one.

Does anyone know if you can buy gift cards to grocery stores like wal mart so that you can use that later on after the bk to help you get by?

[Trixie007]

Gift cards would have to be exempted/declared, the same as if you had the cash. Toiletries, paper products and cleaning supplies have a lo-o-o-ng shelf life though! I think we have enough of that stuff to last a year now. Our attorney said we don't have to list consumables on our asset schedules.

[okiemom2008]

Gift cards would have to be exempted/declared, the same as if you had the cash. Toiletries, paper products and cleaning supplies have a lo-o-o-ng shelf life though! I think we have enough of that stuff to last a year now. Our attorney said we don't have to list consumables on our asset schedules.

\
Thanks. We move around so much that I just do not want to haul things from place to place. That is why I was hoping gift cards would work.

[mintz]

If you have any home repairs that you need done, now would be a good time. You should not spend it on luxury items. Perhaps a laptop for a student?

[okiemom2008]

If you have any home repairs that you need done, now would be a good time. You should not spend it on luxury items. Perhaps a laptop for a student?

Well we are moving and I dont want to fix up my landlords house! We let our house go in bk so we are starting from scratch. Just wish I could get some gift cards to keep ahead

[momof3b1g]

What about oil changes? New tires? Gas for vehicles?

Did you do your online pre bk class?

[mintz]

I would do the IRA if you have nothing else to spend it on

[2Bshinyandnew]

Gift cards would have to be exempted/declared, the same as if you had the cash.

ROFLMAO!! This made me chuckle! Imagine showing up to your 341 and handing over $500 in Safeway or Publix gift cards to the trustee??!! Once puchased, they have no cash value...how would this "asset" be distributed to any creditors??? I dunno, this just made me giggle

[willbfree]

Okiemom2008 you need to check with someone in your own state but in AZ our bk attorney says we can spend our tax refund on $750 debit cards from a grocery store to save for the bk process. Your state may allow more or less but the answer is yes you can. Our attorney also stated that Costco and Sam's were out. They have too much nonfood inventory and to stick to true grocery stores like Kroger's, Fry's, Albertson's, etc. She also said we could take a vacation with that tax refund money (yeah right) but it's a legit use of the tax refund if you can't find anything else. Just make sure and keep all receipts to prove where the money was spent.