Tax *refund* as income or not

[empowered]

I collected a hefty CA tax refund early this year and didn't include it in my means test form or on my income form for Chapter 7. Note that this is from the state, not the feds.

I've run the numbers and I'm still under the median including it but when I look at form B22 it seems I'd be dividing it by 6 like everything else and then multiplying it with everything else by 12 in the end so that it ends up being counted as twice the annualized income that it is.

This is proper?

I also don't see where to put it on Schedule I. I did see a thread that said that different districts treat it differently but that it probably should be included in the B22 means test. It doesn't seem to be likely to hurt me to include it and will make everything look even more on the up-and-up so I suppose I should.

I'm going to file next week so am trying to finish the paperwork off before Friday. Please advise if you can straighten me out on this one. Note that I now reside in another state so the 7 is not filed in CA though I will be using CA exemptions (but will not exempt this long spent refund).

Thanks.

[SMinGA]

No need to exempt it - its not cash on hand at time of filing so its not an asset.

My understanding is that all $ received during the 6 month look back gets counted on the means test to see if you're over or under median income. That's for the presumption of abuse test... But schedule I and the means test are not the same thing - schedule I is active, current income. Your tax withholdings are accounted for.

If you normally get a large refund - you may need to adjust your withholdings to correct that. OTherwise the trustee may see it as you're holding out extra - lowering dmi that could be a ch. 13 payment to your creditors.

As with everything else, discuss with your attorney before making any changes.

[empowered]

Thanks SMinGA. I am my own attorney so the best I can do is research and question. But the distinction you make between monetary funds for means test and "active" income simplifies it for me. Because of the postings I see here, I understand that so long as I fill out my paperwork in good faith, things should work out (especially since I'm under the median :] ). It still seems weird to end up with the amount I received in refund doubled when I have to multiply by 12 but it does not hurt me. I don't typically receive huge refunds; this one was the result of leaving the state.

Thanks again.