2009 Taxes Foreit ?

[Raven43]

Right before going in for my 341 meeting the trustee's asst came out and handed everyone a form saying that we would basically forfeiting our 2009 tax returns....is that normal or am i mistaken...this was in Phoenix,AZ

[JRScott]

Starting a little early this year but yeah it is normal in the 3Q and 4Q of the year on filing to withhold the tax returns. However there are a few things you could do. One is you could adjust your W-2 withholding so that less is taken out in the last half of the year.

[Raven43]

thanks for the quick reply i appreciate any advice i can get on this

ok i will look into having less tax withheld...what other options are available

[shabam]

This is a great point. Thanks for bringing it up.

So ideally we should adjust are exemptions in order to receive less.

[music12]

I agree with JRScott, except i think it's ALWAYS good to adjust exemptions to lessen the tax refund, not only because a bk trustee would otherwise take it. that's because any refund you ever get means that you had given a loan out to the government with 0% interest for an entire year. now, wouldn't you be better off with that money sitting in your own bank account, earning interest for you??

[Amy26]

Yup, I highly doubt I'll be getting a refund at all next year since I won't have the interest on my mortgage to cover my 8 withholdings on my W-4! I generally have always gotten money back from having the interest credit from my house even with the 8 withholdings...but now.... probably not!! So...suck it trustee.

[scorpios]

so is that federal only or state tax return also? how do you figure out what your exemption should be? we are a family of 4 and mortgage on our house.... we have always claimed married 0 but right now have it at 10 to get some money for lawyer. thanks everyone

[aces67]

so is that federal only or state tax return also? how do you figure out what your exemption should be? we are a family of 4 and mortgage on our house.... we have always claimed married 0 but right now have it at 10 to get some money for lawyer. thanks everyone

THere is a form on the IRS website that will help you figure it. We withheld for 10 all year last year and we are still getting a refund of $1500. We are a family of 4 also.

[willbfree]

The trustee can only take a percentage of the tax refund in 2009. Specifically it's for the months prior to the month of your filing. We filed in March so at best the trustee could demand is a 1/6 of our 2009 tax refund. We did adjust our withholding to ensure that we will not be receiving a refund. So the question is moot in our case. Raven we are in Southern AZ and it wasn't discussed at all at our 341.

[LuciluS]

One who has a 2008 Tax Software maybe able to plug estimated earnings and deductions to arrive at estimated 2009 Fed. & State Tax Return. Also, for those like me, who receives SSD & no taxes from the disability, the software comes in handy. I've used TurboTax for years.

With the estimated Fed. & State Tax Returns, I'm going to ask Attorney to use our exemptions for such.

Luci

[scorpios]

so they can take federal tax return how much depends on what month you file..... but what about state return? can they take that too?

[music12]

scorpios, that's a good question! at least in my district, the trustee only wants a copy of the federal form, not the state form. i don't know if that means anything about whether they plan to take the tax refund. i'd think that any asset can be taken by the trustee, so i would think the state refund can be too. but i don't know.

[bankruptsee]

my lawyer didn't talk about this but she factored our tax return into our monthly income. (divided by 12)

Do they ALWAYS take it? What about in a case of "no distribution"?

[music12]

i think "no distribution" means they are not going to bother with any assets whatsoever. you keep everything and the creditor gets nothing.