Question for anyone in Orange Counnty and Tax Refund......

[oc714]

Spoke to my attorney regarding a tax refund and stated they don't count it as income but wanted to know if anyone in Orange County has had any experience with this.

Thanks in advance.

I'm learning so much from reading on this forum.

[JEM]

Not in Orange County, but our experience was that it was NOT added back in as income.

Most of ours was NOT over-withholding, but tax credits. (Child tax credit for 2 children, and the Making Work Pay credit-$800-which will be going away next year anyway) About $600 was over-withholding.

[oc714]

Not in Orange County, but our experience was that it was NOT added back in as income.

Most of ours was NOT over-withholding, but tax credits. (Child tax credit for 2 children, and the Making Work Pay credit-$800-which will be going away next year anyway) About $600 was over-withholding.

Thanks JEM. I'm sure ours is over-withholding and Child tax credit for 3 kids, interest on mortgages, and childcare.

[momofthree]

Since your gross income (before taxes) is used for the over-median calculation, it won't be added back in as gross income as it applies to the median-income numbers. However, if you consistently receive a large refund, they may add it back in to your net income as it applies to your schedules I & J and your DMI.

For example, if you received a refund of $6000, that $6000 will NOT be added onto your yearly gross income as it has already been counted in your annual salary. HOWEVER, they may divide that number by 12 (12 months in the year) and add it to your monthly DMI and say that you are overwithholding from your paycheck. That would add in an additional $500/mo of DMI. If you don't have enough valid expenses to eat up the additional income, then they may want to push you into a ch.13.

I'm not in OC.

[oc714]

Since your gross income (before taxes) is used for the over-median calculation, it won't be added back in as gross income as it applies to the median-income numbers. However, if you consistently receive a large refund, they may add it back in to your net income as it applies to your schedules I & J and your DMI.

For example, if you received a refund of $6000, that $6000 will NOT be added onto your yearly gross income as it has already been counted in your annual salary. HOWEVER, they may divide that number by 12 (12 months in the year) and add it to your monthly DMI and say that you are overwithholding from your paycheck. That would add in an additional $500/mo of DMI. If you don't have enough valid expenses to eat up the additional income, then they may want to push you into a ch.13.

I'm not in OC.

Thanks momofthree. Just trying to see what options we have.

[tcreegan]

Hi all, Hi oc714,

Income is just one fish to fry, the bigger fish is the trustee wanting it as a cash asset for the BK estate to distribute to creditors. The general rule is "get it, spend it" (unless you can exempt it)

...general, but to get down to specifics, you need a local BK attorney who knows how the local BK trustees operate. From your atty, it doesn't sound like the trustees in your area bother with reapportioning the tax refund to recalcualate income. Can't say I blame them, except for extreme cases it probably hits the "more trouble than it is worth" category.

Good luck w/ your case, let us know how it turns out!

Tom in Colo