EIC in Ohio

[Trisscity]

I live in Ohio and most of my tax refund was from EIC and child tax credit which totaled about $4900. $300 from state and about $400 of the $4900 was federal. My law office has basically said that they don't automatically take EIC and child tax in Ohio anymore and that as long as I'm spending the entire refund on necessities and keeping receipts then I'm fine.

My question is what qualifies as a necessity? Obviously I know that food, housing, clothing, etc. qualify but what about other household bills like cable, garbage removal, and phone bill? I live with my parents and it said not to give any money to relatives. My mother asks me for $100 per month in rent. Is it okay to give my parents $1200 for the entire coming year? I've lived with them for years with my daughter. My income is low and every time I get a tax refund I always help pay up bills and contribute whatever I can to rent. Throughout the year most of my monthly income goes to gas, food, some utilities, student loan, phone, and any other expenses related to myself or my daughter (shampoo, activity fees, toilet paper, etc).

I've kept receipts to show the trustee. I just want a better understanding of what they will expect.

[forgotten]

I live in Ohio and most of my tax refund was from EIC and child tax credit which totaled about $4900. $300 from state and about $400 of the $4900 was federal. My law office has basically said that they don't automatically take EIC and child tax in Ohio anymore and that as long as I'm spending the entire refund on necessities and keeping receipts then I'm fine.

My question is what qualifies as a necessity? Obviously I know that food, housing, clothing, etc. qualify but what about other household bills like cable, garbage removal, and phone bill? I live with my parents and it said not to give any money to relatives. My mother asks me for $100 per month in rent. Is it okay to give my parents $1200 for the entire coming year? I've lived with them for years with my daughter. My income is low and every time I get a tax refund I always help pay up bills and contribute whatever I can to rent. Throughout the year most of my monthly income goes to gas, food, some utilities, student loan, phone, and any other expenses related to myself or my daughter (shampoo, activity fees, toilet paper, etc).

I've kept receipts to show the trustee. I just want a better understanding of what they will expect.

Everything you mentioned is a necessity. A new TV or a vacation would not be. As far as giving your mother money, paying $100/mo for current rent payments should not be a problem, prepaying for a year (or paying past, overdue payments) however would not be.

[Trisscity]

So are you saying giving $1200 for all of 2010 is a problem or it is not a problem? It's hard for me to pay the $100 per month each month, it's easier to give it to her in a lump sum with my refund. She doesn't normally ask for rent, but my step-dad lost his job last year and she took a few pay cuts at her job.

[jennilynn]

check with the lawyers office. In our district, exemptions and trustee only allow to pay the current month and one month ahead on utilities and rent/mortgage, so prepaying the full year could very well be a problem. Based on your area and your trustees. The attorney will know for sure.