Question about tax refund

[dumpinmydebt]

Our Trustee also told this debtor his case would remain open until he received a copy of his tax return. This guy stated that his income for the entire year would be around $12k. He was unemployed for a good period of time. I couldn't believe they would even consider taking a tax refund from someone who only made $12k in 2010.

[tcreegan]

chicagoannie....can it be covered by the IL 4K wildcard exemption?

Just a thought,

Tom in Colo

[tobee43]

Our Trustee also told this debtor his case would remain open until he received a copy of his tax return. This guy stated that his income for the entire year would be around $12k. He was unemployed for a good period of time. I couldn't believe they would even consider taking a tax refund from someone who only made $12k in 2010.

that is the terrible!!! how low is lowest????

tom, if that could have been exempted his atty should have put it in there...don't' you think????

[BKDebby]

No, Annie, - it's not Illinois.

[BKDebby]

Daylate, I was claiming 0 and I changed it to 3 exemptions (I'm single, no kids), --- I changed it the end of September but it's probably too late in the year to make a difference. My attorney told me to go ahead & change it, but he also told me after my 341 that the trustee usually only takes those above $1000.00 - BUT he also told me this trustee I had was one of the worst for taking refunds...so I'm probably screwed. I still think mine will be right at $1K or slightly above.

[tcreegan]

Hey BKDebby, just a thought...can you pay forward on next years taxes? (better clear this w/ attorney)

Tom in Colo

[chicagoannie]

Tom - yes on the wildcard - I guesstimated my 2010 refund and put 88% (YTD prorated for 11-18 filing) of the non EIC/CTC refund in my wildcard exemption, then put the EIC estimate (max $5666 for 2010, 4 kids) simply as exempt - I forget which schedule. I am going to do whatever I can to hang on to that refund because if I am not working, my kids and I will be destitute without it. But I am scared about losing it. We really count on it, that's for sure.

[angles]

We had a large refund last year due to expenses and the Trustee asked about it, but when he saw the exemptions he no longer seemed interested in it. I am not sure if anything more will come of it, but how does the process work if you have to turn over a refund? The reason I ask is I recall reading a thread that the fed held the filers refund just in case the trustee wanted it. Is that how it works or do you turn over your tax forms along with the refund check when you receive it?

We are hoping to start our savings as well with the anticipated refund. Thanks for the help.

[tcreegan]

You should be OK chicagoannie.

angles, I doubt they can get a federal offset in place this late in the year. Folks have been saying the trustee keeps the case open until you file your return and fork over the refund. Everyone who said the trustee was going after the tax refund, the trustee talked about it in the 341 meeting. If the common experience holds, if the trustee didn't instruct you during the 341 on what to do, they aren't going to go after it.

Hope you both get your refund to fund your 'fresh start' !!

Tom in Colo

[angles]

Thanks Tom!