Tax refund and confirmation letter Question.Please help

[mark3413]

I have a question that has been bothering me big time. I filed Chapter 13 in April of 2006.I was the only one that filed, My wife did not file, and we kept her out of it.My plan was confirmed in October, and the confirmation letter, nor the trustee has ever mentioned a word about income tax returns.We have 2 small kids, and a new baby.Since my wife didn't file BK, is there any way we can file, and she gets a refund back, or what should we do.We've filed together every year to get more back, but since this is the first tax year since I filed bk. I don't know what to do.It would be like her getting punished too if we got our whole tax return refund taken, and I'm trying to figure out the best way to do it, so at least she will get some money.She was off 6 weeks with the new baby, and with 3 small kids, we could use it.Anyone, please help with a suggestion, it's killing me worrying about it.We live in Tennessee, and I don't know if I should ask my lawyer, or lay low, and hope they let tax season pass buy without grabbing it.

I called my attorney, and they said to file through mail, but don't cash the check until I call them and tell them what my refund is, then they will advise me further.This kinda concerns me as to why they want to know how much I'm getting , then they will let me know.It makes me think they may tell the trustee what our refund is, and he can decide what to get.My wife will kill me if he gets it all, because she did not file.I'm the only one that filed.

[aa06a47]

Good question and good strategy. You can always file a separate income tax by law. Ask your attorney, that is what they are there for.

[lrprn]

Ask your attorney, that is what they are there for.

aa is right - ask your lawyer. Is there some reason you are reluctant to do that?

[dac67]

I feel the same way about asking my attorney, I feel like I can't , like he is working in cahoots with the trustee. I honestly just don't ask. I come hear.
Mark3413 you are in the same boat as I. I filed in Aprl but was confirmed in July. I have nothing noted anywhere that we have to send in our taxes. I am just doing the waiting game. I Live in New England and our Attorney says our trustee is very good to deal with. I just make sure I send in my check on time each month and have not heard a word from him as of yet. We are hoping.

[In the Hole...]

My confirmed plan makes no mention of of my tax refund. (Filed 10/04, confirmed 9/05)
I have adjusted my deductions to get as little as possible back.
2004- $1100
2005-$800
2006-$230
When I sit down to do my taxes this year, I expect to get back ~$200...
And I keep it.

I originally thought of my refund as a saving account/cushion, but the spike in energy costs (Katrina) almost finished me. I had to adjust my W4 to account for my mortgage interest paid (took more allowances) at get more money up front. Since than, my local taxes have skyrocketed; utilities and food are also hurting my budget. I will need a second job soon...

[$$only4ever]

I live in Maryland. Nothing in my confirmation plan stated anything about tax refunds. Based on prior tax years, the trustee was fully aware that I get a small refund back on each, but my attorney said that the refunds were mine to keep. However, again the refunds are small and my attorney also advised me to file by paper and not electronically.

[mark3413]

income tax return, and called attorney.Kinda worried what they told me

I called my attorney, and they said to file through mail, but don't cash the check until I call them and tell them what my refund is, then they will advise me further.This kinda concerns me as to why they want to know how much I'm getting , then they will let me know.It makes me think they may tell the trustee what our refund is, and he can decide what to get.My wife will kill me if he gets it all, because she did not file.I'm the only one that filed.

[rrockinggramma]

The tax refund and getting it back will depend on local practice and your trustee and it varies from trustee to trustee. It sounds like your trustee will let you keep a certain amount and then anything over that would have to go to your plan. Read the fine print in your plan. In my plan, it specifically states that my refund must go to the trustee, all of it. So I adjusted my withholding also and now I owe like 49.00 this year. I would rather do that then give him 2000.00 But this is no consolation for you this year. With 3 kids, you probably get some EIC and those rules vary from trustee to trustee also. Some trustee's will see that portion of the refund as exempt. So you have to do what your lawyer says. To not do it that way could cause dismissal of your case by the trustee. And I hope your refund is small. It may all work out in the end though, but that doesn't help your stressing about it now. Good luck with it.

[mia111]

hi,I am In Ohio
In my confirmation letter it says that anything over $1,500
we have to give the trustee,but that if we need more to put in an
application for it,which my attorney said he would do,
but I wonder how much more?
Also it says that my earned income and child tax credits are excluded
so does that mean that I am allowed $1,500
plus my extra credits?
we will probally change our witholdings this year,but we just filed in October 2006,so we couldn't do that last year.
One more question,with Chapter 13 can you file at places like hr block?

[mia111]

just wondering if anyone could please respond,thanks god bless

[SinkingFast]

The letter probably means ANYTHING in excess of $1500. BUT, you're really gonna need to ask your attny if your refund comes in higher due to child tax credits. There's been Opinions rendered on child tax credits not being included. So maybe your attny can "discuss" your particular situation with the Trustee.

I don't think using a tax filing service will be a problem. Just don't do the Rapid Refund thing. That's a loan that comes with high interest/fees. Our Trustee specifically told a filer ahead of us at our 341 not to do Rapid Refund. Our attny said he'd never heard that before from the Trustee, but the attny speculated it was because of the charges associated with Rapid Refund. Not to mention, people get their refunds, spend the money, and then struggle to pay the Trustee what they do owe.

[mia111]

thanks sinkingfast