Tax Saver Account and DD Advances

[Meatstick]

I was just wondering how payroll deducted Tax Saver accounts and also Direct Deposit Advances are treated when filing your petition.

I have a Tax Saver account that is payroll deducted at $75 per bi-monthly pay period pre-tax. We then withdrawl from the account for presciption meds, doctor and dental services. This is already included in my gross income calculations when calculating our 6 month median income and means test figures. Am I correct in assuming that when we have the reimbursements deposited into our bank that this is NOT again counted as income. If it were it seems like that would be counted twice. Just curious as it shows up on bank statments in the deposits field.

Also a few months back I did 2 direct deposit advances for $500 each. Of coarse it is always bad to do that but it is what it is. Since it is an advance of future direct deposits am I also correct in assuming that these are not counted as income ?? I get the advance of $500 and then on payday the bank takes it right back from our direct deposit so its not like it is extra earned income.

Just looking for clarification.

Thanks in advance.

[BKDefender]

If it is already counted towards your income then it does not count twice. Income is only counted once. Make sure to document each transfer so you can explain it if it ever comes up.
As for your payroll advances, you can look at it two ways: 1) High Income for that month and less income in future months; or 2) A $1k loan that you pay back when you're paid the next time. Option 1 would classify it as income at the time you receive it but would substantially reduce your income numbers when you paid it back. Option 2 is the one that I think it would be classified as, i.e. a loan to your employer. Proceeds from a loan are not income because you gain two things with a loan - $500 asset and $500 liability so your net increase is $0.00. That's the same reason a $10k student loan is not income for the means test.

--William

[Meatstick]

Thank you very much for your reply, I really appreciate it.