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Back taxes and Means Test

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    Back taxes and Means Test

    I am planning to file Chapter 7. Probably pro se, although I'm open to paying an attorney to grease the wheels so to speak.

    Anyway, I screwed up my taxes a few years ago and I am on a payment plan to pay those back. I am up-to-date on the plan. I know these taxes will not be discharged.

    Where do I put this on the Means Test?

    Line 28
    Other Necessary Expenses: court-ordered payments. Enter the total monthly amount that you are required to pay pursuant to the order of a court or administrative agency, such as spousal or child support payments. Do not include payments on past due obligations included in Line 44.

    or

    Line 44
    Payments on prepetition priority claims. Enter the total amount, divided by 60, of all priority claims, such as priority tax, child support and alimony claims, for which you were liable at the time of your bankruptcy filing. Do not include current obligations, such as those set out in Line 28.

    The back tax is a priority claim. However, I'm on a payment plan, and have been for about a year, on which I'm up-to-date. Tax isn't mentioned in the descriptor for Line 28. If I can list it on Line 28, I'll get a bigger amount as it's only going to take me about 2.5 more years to pay back the taxes at my current payment amount (vs. dividing the amount owed by 60 or 5 years).

    Also, has anybody ever put their federally-backed student loan payments on Line 28? They are backed by the Department of Education, which would certainly qualify as an administrative agency.
    Filed Ch 7 pro se Oct 2010 . Filed student loan AP pro se Feb 2011 . Discharged Feb 2011 . AP trial 1/10/2012 . $28K in student loans dismissed Jan 2012 . ECMC appealed. Appeal hearing 7/2012. Original judgment upheld 9/2012.

    #2
    The taxes are a priority tax.

    Student loans are allowed as expenses in some districts but not others. Many districts do not allow student loan payments, since the student loans can be put into forbearance during bankruptcy.
    You can't take a picture of this. It's already gone. ~~Nate, Six Feet Under

    Comment


      #3
      I'm wondering this too.

      Comment


        #4
        Back taxes = Line 44

        Student loan payments do not count in the means test (in any district).

        Comment


          #5
          Originally posted by HHM View Post
          Back taxes = Line 44

          Student loan payments do not count in the means test (in any district).
          Is that fact that I and the IRS have a payment plan in force irrelevant, then? As stated in the OP, I've been making payments for a year.
          Filed Ch 7 pro se Oct 2010 . Filed student loan AP pro se Feb 2011 . Discharged Feb 2011 . AP trial 1/10/2012 . $28K in student loans dismissed Jan 2012 . ECMC appealed. Appeal hearing 7/2012. Original judgment upheld 9/2012.

          Comment


            #6
            Originally posted by HHM View Post
            Back taxes = Line 44

            Student loan payments do not count in the means test (in any district).
            Yes, I should have been more clear. Student loans may be able to count as part of your expense schedule in some districts but will never count as part of the means test.
            You can't take a picture of this. It's already gone. ~~Nate, Six Feet Under

            Comment


              #7
              Originally posted by backtoschool View Post
              Yes, I should have been more clear. Student loans may be able to count as part of your expense schedule in some districts but will never count as part of the means test.

              I'm really more confused about the federal taxes, as I have a payment agreement--which I have been following for a year.

              In other words, the IRS is an administrative agency, as mentioned in Line 28.

              If I had not entered to and been following a payment plan I know they would belong on Line 44. However, there is a payment plan agreement in force, suggesting Line 28.
              Filed Ch 7 pro se Oct 2010 . Filed student loan AP pro se Feb 2011 . Discharged Feb 2011 . AP trial 1/10/2012 . $28K in student loans dismissed Jan 2012 . ECMC appealed. Appeal hearing 7/2012. Original judgment upheld 9/2012.

              Comment


                #8
                My payment plan with the IRS isn't an order, but an agreement. I think that's the difference.

                While I passed the means test, so didn't need to fill out the individual boxes, I think it would clearly go under line 44.

                On Schedule E, my back taxes are listed as priority non-secured claims, and the expense (monthly payment) is listed on schedule J line 12 taxes.

                If your taxes were the result of a court order, then it might be different.

                Comment

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