Tax Refund~counts as income??

[kenshirley]

I noted in another thread that they stated a tax refund is considered income.
If that's true I may have to let them have mine. It appears so far that we will get some $700 back this year but if I file and get it back before I file it could put me over the median income.
I may be better off to wait and file and let them have it so we can file chapter 7.

[jribe]

I noted in another thread that they stated a tax refund is considered income.
If that's true I may have to let them have mine. It appears so far that we will get some $700 back this year but if I file and get it back before I file it could put me over the median income.
I may be better off to wait and file and let them have it so we can file chapter 7.

i was told that if it's included as income on your tax return- it counts as income. A tax return is obviously just a refund of money you've already paid. Some BK districts are different though. I'm in CA

[mynameainttracy]

Although we were in a 13 and not a 7, our attorney took our refund, divided it by 12 and added it to our monthly income because we were over withholding. He told us the trustee was starting to focus on returns and we had to take it into account.

[Trixie007]

Tax returns are not income, as it is money that you paid on income earned. However, if you don't spend it before filing, it is an asset.