Can someone help me asap re: taxes

[bakergrl]

I am filing my taxes online and it looks like I am receiving about $950 more than what my lawyer exempted between the federal and state. Are they going to take this? Also there is an option to apply the over payment of the state taxes to next year, should I do this?

There is an injured spouse that goes with the state, if I apply the over payment does that get messed up.

I hate to be sneaky but I really do not want $1000 to go to creditors.

[BKDefender]

Yes. No.
If you have $1k apply to next year's then you're taking money that is property of the estate and retaining it for your personal use - BIG no-no.

Yes they will take it, and NO do NOT apply the overpayment to the state taxes next year. Here in Nevada if you do that the trustee will make you pay that amount to the trustee or you don't get your discharge. The trustee actually sends the debtor (but not the debtor's attorney for some stupid reason) a letter telling them that they must get a paper check, must NOT electronically wire it into their bank account, must NOT apply it to next year's taxes, and must bring the check to to the trustee's office as soon as the check arrives. You'll sign the check, hand it to the trustee who will deposit it and write you a check for the non-exempt amount. I tell my clients that they should call me when they receive anything from the trustee or bankruptcy court and I prepare them for this letter. Also, don't get a refund-anticipation-loan, BIG no-no.

--William

[bakergrl]

Thank you for the reply. I put it to not apply it for next year. If my lawyer exempted a certain amount will I recieve up to that amount? Once the refund comes in will I have to write the trustee a check for the difference?

The extra money in the tax return is because I go to an expensive college and there were extra deductions because of it.

I filled but I have not attended my 341 yet. Part of my state refund is garnished to repay a debt, will this be deducted from what the trustee takes?

[BKDefender]

The rules require that you provide a copy of the past two tax returns to the trustee no less than 7 days prior to your 341 meeting. Here in Nevada we're supposed to have it to them 10 days before the 341 meeting. So you should contact your attorney about whether you can provide a copy to your trustee or if your attorney wants to see your return and then your attorney provide the trustee a copy.

As for the difference - some trustees want you to sign the check and give it to them, they'll deposit it and write you a check for the exempt amount. Others will let you write them a check, cashier's check, money order, or provide cash for the non-exempt portion.
Either way, the trustee will get the non-exempt portion.

Did you get any from Earned Income Credit (EIC)? I don't know about your state, but Nevada's exemptions exclude everything from EIC in addition to the $1k exemption per filer we get. So if a client has $950 in the bank & $50 in cash at the time of filing ($1k exemption), and gets a tax refund for $1300 with nothing but EIC, they keep the whole refund.

--William

[bakergrl]

I did not file the EIC, we made to much. Most of the money on the return was from getting money back because I am a college student, child credit, and there was $800 that was something like a stimulus check?