Trying to decide when to file...

[coolmom04]

I just realized that if we wait until the end of June, I can file along with my husband. I have a little debt, but haven't gotten any information from any creditors in so long.. I don't know what to do about that.

Anyway, from what I am understanding, you cannot double the exemption amounts for anything in NC other than the homestead exemption - is that correct? I am about 99% sure our home and cars are safe even without doubling any exemptions.

What I am struggling with is.. we'd planned to file in March b/c that way, his bonus would not show up in the 6 month look back.. it will have been 90 days since our last cc use, and it will be before any potential bonus that my husband might get. And our son will still be in preschool, so we can count that on expenses. We can also count my husband's tuition and books.

If we wait until June, then we can claim both our tuition fees and books, but my son won't be in preschool again until September. I guess we can't count a future expense on our expense sheet, can we?

We will get our income tax refund before we file.. can we use that to pay on our home or our van? If we do that before we file, will the trustee want to add that refund total to our income total?

Also, if my husband gets a bonus AFTER we file, what happens with the bonus? I am not sure we'd have enough exemption leftovers to keep the bonus safe. It all depends on how much our our vehicles are supposedly worth then.

[ChaseDidThis]

but my son won't be in preschool again until September. I guess we can't count a future expense on our expense sheet, can we?

schedule J is for current and future expenses, so yes you can list them (annual cost of expense divided by 12 gives average monthly expense) It doesn't matter if the bill isn't due in the month that you are filing, as long as it is a valid expense you should be good.

Money received before filing should be used for necessary living expenses, you could apply money to the mortgage, just make sure you can exempt the equity in the house.

[coolmom04]

So when you save money, where did you keep it?? Is it okay to keep it in the bank and then when you retain your attorney, pay it all out of the account? I had it in my head it would look bad to ever have more than a couple hundred bucks in the bank! I didn't think it should look like we had money sitting anywhere.

[HakunaMatata]

The Trustee won't expect you to stockpile attorney's fees under your mattress. Provided the funds will be safe (no cross-collateralization/right to off-set), you can place them in the bank.

If cash is exempt (and properly documented), it doesn't matter where it sits. I loaned my sister $4500 prior to filing (which was withdrawn from a savings account in the "Trustee traceable" form of a Certified Check) and I had $600 in the bank on the day of filing.

[Clouddancer]

schedule J is for current and future expenses, so yes you can list them (annual cost of expense divided by 12 gives average monthly expense) It doesn't matter if the bill isn't due in the month that you are filing, as long as it is a valid expense you should be good.

Money received before filing should be used for necessary living expenses, you could apply money to the mortgage, just make sure you can exempt the equity in the house.

So do you average the last six months for childcare deduction on the means test or use current childcare monthly costs? It says "Enter the average monthly amount that you actually expend on childcare." I guess I am confused with the actually spend versus the first part that says average.

[coolmom04]

So do you average the last six months for childcare deduction on the means test or use current childcare monthly costs? It says "Enter the average monthly amount that you actually expend on childcare." I guess I am confused with the actually spend versus the first part that says average.

I think it means just take what you "actually" spend and then divide it out by 12. So, based on what the other poster said, I took the 137.50 (max allowed - I actually pay $160) and multiplied it by 9 b/c he only goes to preschool 9 months out of the year. Then I divided that by 12 to get the "average" monthly cost. Does that make sense?

Also, is preschool and college tuition considered luxury things? Or is it okay to claim those?? Someone on another thread said I might not even be able to claim the preschool b/c it's not really a "necessity" but if we're allowed to claim things like... internet and cell phone... I wouldn't consider those to be "necessities" either.. so I wasn't sure.

[Clouddancer]

I think it means just take what you "actually" spend and then divide it out by 12. So, based on what the other poster said, I took the 137.50 (max allowed - I actually pay $160) and multiplied it by 9 b/c he only goes to preschool 9 months out of the year. Then I divided that by 12 to get the "average" monthly cost. Does that make sense?

Also, is preschool and college tuition considered luxury things? Or is it okay to claim those?? Someone on another thread said I might not even be able to claim the preschool b/c it's not really a "necessity" but if we're allowed to claim things like... internet and cell phone... I wouldn't consider those to be "necessities" either.. so I wasn't sure.

But isn't your preschool in reality used for daycare? I doubt a trustee would ever question childcare unless it was a very expensive private school. Why only 9 months and I don't see a published max on childcare on the means test? Okay I see what is going on. You are putting the preschool expense under the education under 18. Isn't the preschool really daycare and if you work or go to school all year then you need daycare all year. I think the education under 18 is for private schooling only for school age children. Anybody else know that one.

[coolmom04]

But isn't your preschool in reality used for daycare? I doubt a trustee would ever question childcare unless it was a very expensive private school. Why only 9 months and I don't see a published max on childcare on the means test?

Well, I guess it's daycare, but I'm a stay at home mom, so it's not really so I can work or anything.

He only goes to preschool through a traditional school year calendar. So he goes from September through May.

Now that I am reading it, it says elementary and secondary education, so this probably isn't even where I need to put preschool!! Maybe I need to put it in the other childcare box... where there is no max. So confusing.

We may only have a max for my area. Mine says, "Education expenses for dependent children less than 18. Enter the average monthly expenses that you actually incur, not to exceed $137.50 per child, in providing elementary and secondary education for your dependent children less than 18 years of age.You must provide your case trustee with documentation of your actual expenses, and you must explain why the amount claimed is reasonable and necessary and not already accounted for in the IRS Standards."

[Clouddancer]

Well, I guess it's daycare, but I'm a stay at home mom, so it's not really so I can work or anything.

He only goes to preschool through a traditional school year calendar. So he goes from September through May.

Now that I am reading it, it says elementary and secondary education, so this probably isn't even where I need to put preschool!! Maybe I need to put it in the other childcare box... where there is no max. So confusing.

We may only have a max for my area. Mine says, "Education expenses for dependent children less than 18. Enter the average monthly expenses that you actually incur, not to exceed $137.50 per child, in providing elementary and secondary education for your dependent children less than 18 years of age.You must provide your case trustee with documentation of your actual expenses, and you must explain why the amount claimed is reasonable and necessary and not already accounted for in the IRS Standards."

My guess is that you are putting it in the wrong place.

[coolmom04]

My guess is that you are putting it in the wrong place.

I think you're right... which is good for me b/c then there is no "not to exceed" crap

[ChaseDidThis]

Well, I guess it's daycare, but I'm a stay at home mom, so it's not really so I can work or anything.

He only goes to preschool through a traditional school year calendar. So he goes from September through May.

Now that I am reading it, it says elementary and secondary education, so this probably isn't even where I need to put preschool!! Maybe I need to put it in the other childcare box... where there is no max. So confusing.

We may only have a max for my area. Mine says, "Education expenses for dependent children less than 18. Enter the average monthly expenses that you actually incur, not to exceed $137.50 per child, in providing elementary and secondary education for your dependent children less than 18 years of age.You must provide your case trustee with documentation of your actual expenses, and you must explain why the amount claimed is reasonable and necessary and not already accounted for in the IRS Standards."

I would question your attorney directly on this as whats customary in your district, the Trustee might not allow it as a daycare expense if your not working, and might not allow it as an education expense either if he concludes it's not necessary, or in your district it might fly right thru. From what i've read every district has its own quirks and it make all this very confusing sometimes.