Tax Refund?

[vrspartak]

I have read older posts about tax refunds and what happends to them, and i'm a little confused. I read that some people had their refunds taken, while my buddy who filed last year said that it was exempted. I know the specifics vary, but in my case I usually get back 4500 from the IRS...and I usually count on that cash to get me through summer as I'm an educator and only get paid 10 months out of the year. I do not own (outright) any assets (with the exception of a tv, xbox, and computer), so when I look at the CA exemptions list I don't see cash anywhere. yet, my buddy said that his lawyer exempted his refund because he was told that there is up to 20,000 worth of exemptions for somebody in my case...which would surely cover the refud. If I don't have a homestead or house, am I still allowed 20,000 to exempt whatever little assets I own? Can a refudn ever be exempted? Kinda lost and confused here, any info. helps. thanks.

[justbroke]

First, almost all attorneys will attempt to (and usually succeed at) exempting your tax refund.

Second, and to your question on the California Exemptions... under System 2, there is about a $20K exemption known as the unused homstead exemption. If you don't actually use it on a home, then it becomes a wildcard and you can use it for any property. Cash is property, so you can use it to exempt cash. (In some States, cash may be explicitly excluded from the "wildcard".)

[vrspartak]

Thanks

Ok...that makes a whole lot of sense. Seeing as how I don't own 20K worth of stuff, that oughtta cover everything I own, including the refund. thank you for clarifying.

[drowningNdebt]

I think mine is exempt as I hope it is. I'm expecting $1600 back and I didn't think I would get anywhere near that as it has been a ruff year. Every penny counts to me. Jeesh, if I see a penny on the ground I pick it up so I can buy food

[drowningNdebt]

Yup just checked my petition and the attorney did list it as potential stimulous payment and/or income tax refund $8650

[whipster1]

Yep you can estimate your refund. List it in the assets, then exempt it.