Question about tax refund and trustee

[frmrdwn]

One of the attorneys I spoke with this last week or so said that I could use my tax refund to pay his fees. Another attorney advises that any tax refunds over $500 may be claimed by the trustee.

Does anyone know for certain (OR)? Maybe, I just change my withholding to be safe, but I don't want to end up owing! I have additional income of about $7500 that must be claimed, and has not been taxed yet. My usual refund is around 2k.

[Pizza]

They are allowed ONE tax refund check, but there are some allowances for necessities you can spend the refund on, including the attorney's fees, groceries, necessary living expenses, car repairs, etc. so long as you can prove where the money went. In other words, you can't buy an entertainment center, but you can stock up on food and (reasonable) clothing and fix the water pump in your car.

[keepmine]

If it can't be exempted, you have to spend it down or lose it.
Paying legal fees is an acceptable use of the refund.

[Migal]

I will be filing the last of November or first of December. The last tax return is long gone. Won't the attorney try to exempt the 2010 one even though we won't even have it filled out when we file?

[keepmine]

I will be filing the last of November or first of December. The last tax return is long gone. Won't the attorney try to exempt the 2010 one even though we won't even have it filled out when we file?

Your attorney is bound by the exemptions of your state. You need to ask if this can be accomplished.

[UhhhOhhh]

They are allowed ONE tax refund check, but there are some allowances for necessities you can spend the refund on, including the attorney's fees, groceries, necessary living expenses, car repairs, etc. so long as you can prove where the money went. In other words, you can't buy an entertainment center, but you can stock up on food and (reasonable) clothing and fix the water pump in your car.

What do you mean they are allowed one check? When I had my 341 - the Trustee wanted my tax refund for that year (2007 rec'd in 2008) I told him Id spent it and he wanted an accounting of what Id spent it on (for both Federal and state). He then told me I had to send my Stimulus check to him ($900) which I did... and then in May 2009 he sent me a letter saying I had to send him my 2008 refund (both Federal and State). All of that was EIC so I was permitted to keep it. But thats 3 different refunds (or 5 if you separate the Fed and State) - so Im not sure what you mean by 'only one check'.

[UhhhOhhh]

One of the attorneys I spoke with this last week or so said that I could use my tax refund to pay his fees. Another attorney advises that any tax refunds over $500 may be claimed by the trustee.

Does anyone know for certain (OR)? Maybe, I just change my withholding to be safe, but I don't want to end up owing! I have additional income of about $7500 that must be claimed, and has not been taxed yet. My usual refund is around 2k.

I used my refund check to pay my attorney fees, as well as to buy clothes for the kids, food, pay utilities and other necessities..and that was permitted.

Have you looked at the exemptions list for Oregon? Its pretty cut and dried and easy to follow.

[frmrdwn]

I used my refund check to pay my attorney fees, as well as to buy clothes for the kids, food, pay utilities and other necessities..and that was permitted.

Have you looked at the exemptions list for Oregon? Its pretty cut and dried and easy to follow.

Oh, yes. OR has a fairly generous cash exemption. The thing I am learning is to find one, good attorney- one that clicks with me- and follow his/her advice and then try to forget about it. Honestly, I don't know how so many attys can come up with so many different interpretations of a law, and each one sounds absolutely convincing that they are right. One thing I hope is that my atty is both