Question about exempting tax refund......

[JEM]

It just occurred to me...if we exempt our tax refund (which we will), we are still going to have to wait until we are discharged to file our taxes right? We can't file our BK at the end of this month and then file our taxes as soon as we get our W2 can we? Doesn't the trustee have to "ok" all of our exemptions first?

This wont be good. I mentioned in another thread that we really really need our refund soon. I have two teeth that I need dental work done on ASAP. And our van needs some work done ASAP as well. Dh can do the work, but these particular parts are pretty pricey.

I'm not sure we can wait for a discharge to do our taxes. Back between a rock and a hard place.

I hope I'm wrong and someone has some good news for me.

[tcreegan]

Hi JEM,

If you can exempt the tax refund, get that tax return filed!

In fact you are going to need your 2010 tax return before the 341 in the BK.

My sympathies on the tooth work....ouch...both in the chair and in the pocketbook...

Tom in Colo

[october99]

I recently did some reading on this very topic. It seems like it is a district specific situation. Some will let you exempt it prior to receiving/filing it and others will only let you exempt what you have received (cash at that point). I also read that they will not discharge your case until your taxes are filed for the year so you will need to go ahead and file your taxes. I've also read about a lot of folks losing their return.

So I guess it's something I'm prepared to lose if I can't exempt an expected return because I doubt I'll receive the documents I need to file the taxes prior to the bk. I'm bummed about this and actually considered waiting until the taxes are filed and refunds dispersed. I don't know if that will be possible though so I'm preparing for the worst.

I'll be interested to hear what others have to say and how things work out for you. Do you have an attorney you can ask?

[JEM]

Hi JEM,

If you can exempt the tax refund, get that tax return filed!

In fact you are going to need your 2010 tax return before the 341 in the BK.

My sympathies on the tooth work....ouch...both in the chair and in the pocketbook...

Tom in Colo

For some reason, I was thinking we wouldn't have to have had this years taxes filed since we will be filing BK so early in the year. So, you think if it fits easily in our exemptions (which it will), we can file our taxes and receive and spend the refund?

I guess I was thinking that even though we would cover it with an exemption, that it was still part of our estate and we couldn't spend it. The thread about another poster wanting to sell a bra on eBay is what prompted my concern. LOL

[JEM]

I recently did some reading on this very topic. It seems like it is a district specific situation. Some will let you exempt it prior to receiving/filing it and others will only let you exempt what you have received (cash at that point). I also read that they will not discharge your case until your taxes are filed for the year so you will need to go ahead and file your taxes. I've also read about a lot of folks losing their return.

So I guess it's something I'm prepared to lose if I can't exempt an expected return because I doubt I'll receive the documents I need to file the taxes prior to the bk. I'm bummed about this and actually considered waiting until the taxes are filed and refunds dispersed. I don't know if that will be possible though so I'm preparing for the worst.

I'll be interested to hear what others have to say and how things work out for you. Do you have an attorney you can ask?

We do have an attorney. We meet with him on Tues. To go over paperwork and get everything ready for filing this month. I'm sure we'll have what's needed to file our taxes here in the next few days. I'm not really worried anymore about the trustee taking the refund, I asked in another thread about exempting the refund, and whether the trustee could take it anyway. The consensus seemed to be no.

IF IF IF it came down to it, we'd file our taxes and spend it on our necessary items and then file BK.

[JEM]

I talked to the attorney's office today. They actually said that the tax refund wouldn't be an issue. To go ahead and file our taxes when we get the necessary paperwork (w-2's) . BIG HUGE MAJOR RELIEF.

I did mention that I was going to get some dental work done, they did say to call and let them know what kind and how much before I did. I guess I never really thought about that. What exactly is the reason for that? So there could actually be a problem with me getting a filing and a temporary tooth fixed and a crown put on it. ???