Tax Refund clarification please

[Purple8]

I filed chap 7 in july separate though I am married. We got a small refund from fed and state, both less than a thousand. We received refund in Feb. i have been unemployed for almost a year. Can someone please explain if this is something that will need to be paid back, I have read but don't quite understand how it works. Thanks.

[LadyInTheRed]

Did you spend your refund before you filed? If so, you won't need to pay the refund to the trustee. If you didn't spend it, then you needed to exempt whatever cash you had on the day you filed. If you didn't exempt it, you will have to pay any non-exempt cash you had on the date you filed it to the trustee.

The other issue with a refund is that if your withholding and income has not changed, it could be an indication that your tax liability is not as high as your pay stubs show. If your petition shows exactly what your withholding is as your tax liability, the trustee may say your disposable income is higher than your petition shows. If this makes enough difference to make you fail the means test or show enough disposable income on your schedules I & J to push you into a 13, it could be a problem. Your petition should show your actual tax liability which is not necessarily the same as your withholding. A good attorney will make sure that is the case. You most likely will not have problem.

Because federal taxes are higher in 2013 than in 2012, it could be that you won't receive a refund for 2013 or it will be lower. It could be a wash.

[TXskyblue]

I rec'd a refund on my federal taxes in Feb, and it a lot more than yours. I filed in May. The trustee asked me when I got my refund, but that's it. No further questions about it and my case was declared no asset by the trustee.

[Purple8]

Yes refund was spent long before I filed. My attorney has said nothing about failing means test so Im not worried about that.

TX thanks for your reply I feel less worried now.

[Purple8]

This refund was not mentioned at all in the meeting. Was told that if they decided to take some of it a letter would go out within 10 days. It was also mentioned that when taxes are filed for next year if I get a refund, the trustee must be notified, and if they want they can take a percentage of it.