Best time of the year to file?

[danoct]

When is the best time to file so I won't be stripped of my tax returns?

I've talked to a lawyer in December and he told me that is one of the worst times to file.... One, chances are your going to buy gifts which the court will look down upon and two, they will take my tax return. I had my head in the clouds at the moment, so I never asked when the best time is.

[AngelinaCatHub]

The best time is when you can't stand it anymore regarding your mental health and bill collectors. Otherwise now if you already got your tax return. 'Hub

[HHM]

The best time to file would be after you have received and spent your tax refund. Presumably, that would be NOW.

[JRScott]

As HHM says should be around this time 2nd Quarter of the year is around best time.

[MrSmithster]

at my 341 the trustee didnt question anyone about their tax refund unless you received it soon after you filed or you filed your return and havent yet received the refund. just be sure to spend it and then file. one couple before me had a $6K refund they received 2 weeks before filing, the trustee asked them where the money was, their lawyer cut in and said "it was before filing" and the trustee said "ok then". i thought trustee would follow up with more questions, but he didnt, and moved on.

[JoeBankrupt33]

I think the best time of the year has passed already, but you're not too far out. If I had it to do all over again, I would file BK a week after receiving my tax refund (and having spent it). The trustee can always take a prorated portion of your tax refund for the current year, so if you filed BK now, the trustee could take about 5/12 of the refund that you will receive in 2010. If your refund from 09 is big enough, they might be looking out for next year's refund. The later you wait in the year, the better your tax return looks to the trustee.

[lala]

Is it considered income?

Is a tax return considered income for means test purposes? I am assuming yes, but wanted to double check.

[lala]

Oops, I meant tax refund (not return).

[MrSmithster]

i had a lawyer do my means test and he didnt seem to include my return as income, but i could be mistaken.

[CH33 Paralegal]

If you do a 13, it really doesn't matter.

If you do a 7, the "best time" is, yeah, basically a couple months after you get your refund....you will have spent it on "getting by" and with the case only lasting around 6 months or so, the tax refund won't come into play.

In a 13, you can request to retain some of the refund for necessary costs that you didn't anticipate OR because you've experienced a drop in income.

Also you can try to set up your deductions so you can limit the amount of refund you get...that way, your refund is paid out through your paychecks and then there's nothing for the trustee to take.

[OregonMom]

Wish I had a refund problem, I owe, owe, owe. Just miss the earned income credit by a couple of grand so instead I always owe and extra grand. Wish they would do away with the earned income credit, if you don't pay taxes you don't get anything back!!

[whipster1]

Is a tax return considered income for means test purposes? I am assuming yes, but wanted to double check.

No place to add it in the means test that I can see... Looked upon as an asset more than anything else.