Schedule E Question - Chapter 7

[HRoark0717]

If you know you will be owing taxes in 2011 but have not done them yet, would you check the "Taxes and other debts" Box and estimate the amount owed?
I know I will be owing which is why I am in no hurry to do them...

Any feedback would be much appreciated

[justbroke]

If you know you will be owing taxes in 2011 but have not done them yet, would you check the "Taxes and other debts" Box and estimate the amount owed?

No, why would you do that? Taxes are those assessed.

I know I will be owing which is why I am in no hurry to do them...

Or, did you mean that you will owe based on your 2010 Tax Year and will need to pay in 2011? (That's a different question.) Generally speaking, the inclusion of taxes due on this form (including past due taxes), is used when calculating your disposable monthly income (DMI), since priority debt (which taxes usually are) must be paid during the course of a Chapter 13. (It's part of something known as the hypothetical Chapter 13. The means test actually is designed to see how much you could afford to pay in a "hypothetical" Chapter 13.)

Actually, you MUST file your 2010 Tax Return before your 341 Meeting and amend this form anyhow. You can't have any unfiled tax returns for any years preceding the filing of your petition.

So, long story, short version... you need to file your 2010 Tax Return.

[HRoark0717]

No, why would you do that? Taxes are those assessed.

Or, did you mean that you will owe based on your 2010 Tax Year and will need to pay in 2011? (That's a different question.) Generally speaking, the inclusion of taxes due on this form (including past due taxes), is used when calculating your disposable monthly income (DMI), since priority debt (which taxes usually are) must be paid during the course of a Chapter 13. (It's part of something known as the hypothetical Chapter 13. The means test actually is designed to see how much you could afford to pay in a "hypothetical" Chapter 13.)

Actually, you MUST file your 2010 Tax Return before your 341 Meeting and amend this form anyhow. You can't have any unfiled tax returns for any years preceding the filing of your petition.

So, long story, short version... you need to file your 2010 Tax Return.

Yes, I will owe based on my 2010 tax year and will need to pay in 2011. The reason I now that is with my unemployments forms there is the box to check whenever you want taxes taken out. I checked that box only a couple of times in 2010.

You were referring to Chapter 13 above, does your answers apply to Chapter 7 too? Do I have to file the 2010 tax return? My hope was to file my taxes this year near the April 15th deadline because I will owe money.

[justbroke]

Yes, a "hypothetical" Chapter 13 may be used to determine if you can afford a Chapter 13, although you filed Chapter 7. For the most part, if you are over the median and filing Chapter 7, the majority of Form B22A (means test) is like the Chapter 13 Means Test.

[BKParalegal]

Not true on the 2010 taxes because they are not required to be filed until April 15, so if you file before that date then you do not need to complete them. The trustee will ask if you expect a refund and you can let them know that you will owe

[HRoark0717]

Not true on the 2010 taxes because they are not required to be filed until April 15, so if you file before that date then you do not need to complete them. The trustee will ask if you expect a refund and you can let them know that you will owe

If I expect to owe, do I then check the box and add an estimated amount in Schedule E or tell the trustee in person or with an informal letter attached?

[justbroke]

Not true on the 2010 taxes because they are not required to be filed until April 15, so if you file before that date then you do not need to complete them. The trustee will ask if you expect a refund and you can let them know that you will owe

I agree, but the poster didn't indicate a date that they were filing, so I had to use the most restrictive language.

[HRoark0717]

Thanks justbroke and BKparalegal!! ...your input is invaluable.

I am planning to file during the week of March 7th. I am debating on doing my taxes before or just informing the trustee that I will owe on my 2010 taxes.

I read in the NOLO bok that one of the requirements when filing is to show your most recent tax return. If I don't do my 2010 taxes then I guess I will need to show my 2009 tax return and I'm not sure I want to show that...my finances were much different then.

[justbroke]

Do not be surprised that the Trustee, before or at your 341 Meeting, asks that you file your 2010 tax return.

[HRoark0717]

Do not be surprised that the Trustee, before or at your 341 Meeting, asks that you file your 2010 tax return.

Yeah, could see that happening justbroke and then have to deal with that. I am going to finish my 2010 taxes...it will be one less thing to handle later.

I could show the Trustee my completed 2010 tax forms which will show I owe, and then hold on to it until the 18th of April to mail.