Question Before Filing

[desperate&broke]

DH and I get a nice tax return. We plan on filing jointly soon.
My question? We get a nice chunk back in tax refund. We plan on stocking up on necessities which is ok from what I have read. Getting our car fixed (which is in dire need right now).

However, my daughter is about to start going to school. My mom currently watches her and we pay her cash. She can no longer take care of her and I was wondering if I could pay the preschool a few months (about 2) in advance with this money or would you advise against it?

Thanks in advance for any replies ;)

[desperate&broke]

four days and no replies?

[Tbornetun]

I don't see a huge issue with it. It would be like putting a deposit down with a child care center. Similar.

[desperate&broke]

I don't see a huge issue with it. It would be like putting a deposit down with a child care center. Similar.

Someone bit

Thanks for your reply!

[StartingOver08]

Be careful how you handle the transaction because there is a spot in the petition that specifically asks if you have paid anyone ahead. The purpose is so the trustee can get the vendor to turn over those pre-paid amounts to the trustee. I am certain that is not your intent - right?

[desperate&broke]

Be careful how you handle the transaction because there is a spot in the petition that specifically asks if you have paid anyone ahead. The purpose is so the trustee can get the vendor to turn over those pre-paid amounts to the trustee. I am certain that is not your intent - right?

What do you mean if that's my intent?

Doesn't everyone here want to use up their taxes prior to filing? I don't get what you are trying to insinuate?

[StartingOver08]

What do you mean if that's my intent?

Doesn't everyone here want to use up their taxes prior to filing? I don't get what you are trying to insinuate?

I meant that you probably want the actual vendor (in this case the school) to have the $$$ and NOT the trustee. The trustee looks for these kinds of pre-payments. I am not trying to hurt you, just give you a heads up so you know what they are looking for in your petition

[desperate&broke]

I meant that you probably want the actual vendor (in this case the school) to have the $$$ and NOT the trustee. The trustee looks for these kinds of pre-payments. I am not trying to hurt you, just give you a heads up so you know what they are looking for in your petition

You don't hurt! LOL

This is the type of info I am looking for actually. So from the sounds of what you posted, it's best that I don't pay them in advance. <---That hurts!

[StartingOver08]

Its up to you, but the 6 months of expenses prior to your filing will be looked at carefully. When you get your tax return, the Trustee will be interested in how you disburse the refund since you will have spent it prior to filing naturally! Of course, it is typical that you would spend on regular living expenses and things you need to do but have not been able to before the refund (like your car repairs). Just stay away from luxury items and non-necessary items (camaras, tv's etc). Luxury is $600 or more (I believe).

[desperate&broke]

This is what I thought we would do.

Fix my car. Fix DH's car (his is a beater and in dire need of help).
Pay the school (may not anymore).
Buy necessities and stock up a little.
Get contact lenses for both DH and I.
Take the kids to get their eyes checked (our insurance doesn't cover this)
Buy some groceries that we can stock up on.

Stuff like that.

[StartingOver08]

I think all of those are excellent ideas!