Ch 13 & Tax refunds

[amstark]

So we were told by the trustee that we need to turn over our tax refunds.

Normally we receive a big one due to our income & earned income credit with 3 kids.

I was talking to another gal who filed Ch. 13 and she said that she has her Earned Income payments added to her paycheck.

Anyone else do this?

[magyar123]

I suppose it would be - but too late for this year. Year's almost over.
But think about it - adding these amounts to your paycheck will just increase your disposable income - which will increase your plan payments.

[lrprn]

You didn't say exactly when you filed, but if you filed during 2008, your trustee is only entitled to take the part of the refund that was earned from AFTER you filed. For example, if you filed in September 2008, then your trustee can take 3/12ths of your 2008 refund. If you filed in April 2008, then your trustee can take 9/12ths of your 2008 refund. Sure hope you filed later in the year!

It's too late for this year (sorry to hear your trustee is one that takes the entire refund - some don't take all, some don't take any), but for 2009 be sure to adjust your withholding so that you get a small refund for 2009.

Here's the link on the IRS website that helps you figure out the best withholding outcomes on paper - http://www.irs.gov/pub/irs-pdf/p919.pdf - and here's the link that's interactive so you can see what happens with withholding changes online - http://www.irs.gov/individuals/artic...=96196,00.html

To actually change your withholdings, you must tell your employer that you want to change your withholding number. Good luck!

[vanzskater]

You didn't say exactly when you filed, but if you filed during 2008, your trustee is only entitled to take the part of the refund that was earned from AFTER you filed. For example, if you filed in September 2008, then your trustee can take 3/12ths of your 2008 refund. If you filed in April 2008, then your trustee can take 9/12ths of your 2008 refund. Sure hope you filed later in the year!

It's too late for this year (sorry to hear your trustee is one that takes the entire refund - some don't take all, some don't take any), but for 2009 be sure to adjust your withholding so that you get a small refund for 2009.

Here's the link on the IRS website that helps you figure out the best withholding outcomes on paper - http://www.irs.gov/pub/irs-pdf/p919.pdf - and here's the link that's interactive so you can see what happens with withholding changes online - http://www.irs.gov/individuals/artic...=96196,00.html

To actually change your withholdings, you must tell your employer that you want to change your withholding number. Good luck!

Oh man! Music to my ears! I filed in November, and was worried I'd lose my whole tax refund to my trustee.