IL Chap 7, old law, Child Tax Credit Strategy

[familylinc]

What do you think.
I filed on 10/14/05 with 1400.00 in personal property. IL has the 4000.00 wild card. I didn't realize a tax refund was an asset since you didn't get the funds until the next year, now I see where it would be. We will get 4480.00
(3000.00 of it is Child Tax Credit) They cannot take the earned income tax credit but in IL they will take the Child Tax Credit. The Trustee filed a motion for turnover of 10/12ths of the tax refunds. I filed an objection and amended my schedules to use the remaining 2600.00 of my wild card to keep that much of the 10/12ths. Today, I thought of this strategy: The Child Tax Credit is not excess taxes from wages paid in but is a rebate of taxes you owed and paid the government. The amount of the refund from after the filing cannot be touched. The child tax credit is based solely on December 31st. If you filed your case on 10/14 and Heaven forbid your child died on 10/15 or even December 30th you would not be allowed the tax credit for that child because that child was not your dependent on December 31st, the end of the tax year. If your child was born on December 31st, you could file for the tax credit the following day. If you get divorced on 12/30 then you cannot file a joint return. The child tax credit is based solely on what is happening on December 31st. I guess they could then call the 3000.00 a windfall.
Give me your thoughts. Hearing date is March 21st.

[SinkingFast]

I don't know if there's anything to be done about the taxes beyond what you've already done. Ammend to use the remainder of an exemption to cover what you can.

They got so many $$$ in contibutions in Washington DC to push this thing thru, the New BK Law. And there are so many holes in it.

There's no definition of what a family is or is not. We have an elderly parent living with us. She meets the criteria for the IRS. We claim her as a dependent on our taxes. She meets the criteria for the Census Bureau. Related by blood and/or marriage.

There was no mention of the Child Tax Credit. Bush pushed so hard to get that for struggling American families, yet the BK Court can rip it outa your hands. Because there's no specific statement of how to address that portion of income tax refunds.

Oh but let's focus on important things like Household goods shall we??!! We must have definition of what Household goods are or are not.

They can sure as Hell tell you what and what is not to be considered Household goods. And as far as electronics, you're allowed 1 TV, 1 VCR, and one radio, plus up to $500 in the aggregate of other electronic equipment. That includes your DVD's, your CD's, and your video tapes. Anything over the $500 and you may have to buy it back from the Court to get to keep it.

And works of art are not considered household goods. God forbid you have some prints you like to hang on your walls. If they weren't done by a friend or a relative, they'll be up for grabs by the BK Court. Regardless of the fact they're essentially worthless, the Court can take them or make you buy them back.

And the IRS Standards must be the guidelines to determine if your expenses are out of line or not. God forbid you have people in your family that have a special diet for blood pressure control, or diabetes, or to prevent kidney stones and your food costs more than the allowable. You can only spend so much per month on food because that's what the IRS says you must.

This whole thing stinks. I'm fed up with it already and we haven't even filed yet.