Tax Returns - Do you still itemize?

[UpsideDownMI]

For those of you that are in a 13 plan where you are ordered to surrender your entire tax refund, do you still itemize or do you now use standard deductions?

I am curious, because from what I hear in Michigan the trustee wants your entire refund. I know that other members in this forum have also said that they were ordered to not change their withholdings, but I have not heard anything addressing this topic.

I know that for some people the difference from itemizing and standard deductions can be a couple thousand dollars. I would think that this could be used in negotiation with the trustee to allow someone to keep a share of their tax refund by explaining that if you want me to spend the extra time, effort, and money to itemize, I would like a share. If not, I will choose to file 1040EZ which is less time consuming and costly to me.

Any thoughts?

[rrockinggramma]

fill out your tax returns as you usually would. Now in the trustee handbook it states that you can't change your withholdings etc but I did because I didn't want my tax refund going to the trustee. But I am single filer and not head of household. So I just upped my exemptions. I was in my plan for 39 months in Michigan and the trustee never questioned anything. But if you go from a 6000 a year refund for previous years to nothing, well then that might raise eyebrows for the trustee's staff that will check over every return. My refunds were less than 500 a year prior. So common sense should prevail here for you. I think you could up them some but maybe not to 9 if you know what I mean. LOL My trustee cared if I made my payments and sent in my tax returns every year. Other than that I never heard a word from them. Also, instead of the data center, go to the BSS site for the 13 network to get the details on your filing. It shows much more detail than the data center. Use your case number and your ss number to log in.

[UpsideDownMI]

Thanks for the feedback! I understand what you are saying. In my case I will be surrendering (2) houses that in the past I have been able to itemize for very large returns. I expect my refunds to significantly drop due to this (roughly 3K).

I have estimated my 2009 refund on the IRS website and determined that the difference between using standard and itemized deductions is approximately $1600. I normally use turbotax to due my taxes, but if I am required to itemize without any benefit to me for the time and effort, I will pay for an accountant to do it and list it as an expense on schedule J.