Question about where does the tax refund go?

[cso5@]

Ok -- so I get the letter from the trustee -- anything over $1500, he will take.

So I do a pretty good estimate of my taxes -- turns out, I am getting a little more than $1500. About $350 more.

Now, I am not in a 100% repayment plan -- so this $350, if that's what it turns out is the amount over the $1500 I am "allowed" to keep -- will it just go to pay extra, or will it shorten the time I pay by a little bit? Or will all the creditors that filed a claim end up getting just a little more?

I think, when I have all the documents I need (I lack a W-2, but I have my final pay stub -- so, like I said, these are pretty accurate numbers), I will either reduce my deductions so I don't get all that refund, or just have the state refund applied to next year's taxes. Because the state refund is just a little more than the amount over the $1500 -- the state refund is like $470, and I am $348 over the $1500 max allowed refund. So I am "over" by $122.

Anyone see any benefit to either way? Would it raise a flag with the trustee to have that money applied to next year's taxes? Of course it is always easy to mess around with the deductions -- just not claim as much of the charitable contribution I actually made, or not claim as much of the energy improvements I made to my home or whatever. The ones that come with a form, like mortgage interest -- that is harder to reduce.



Thoughts?

[stljohn]

hi

i was 100% don't understand the diff but... they'll throw it in the pot. if for whatever reason they don't disburse they do refund at the end. not suggesting this is that situation I just don't know.

i wouldn't have been comfortable fooling around with applying state refund early, dunno why no real reason just seems too in yo face, ya know?

i wasn't itemizing because I got foreclosed but I would have probably not taken all deductions like you said. Then I would have filed amended later.

and my last year in bk i did mess around with exemptions so i didn't even have a refund. make sure you have some cash in case your esitamte is off!

[Flamingo]

Anything over the $1500 that you are allowed to keep out of your refund will be applied to your creditors by the Trustee over and above what is allotted for them in your Plan. If you are receiving a large refund like that, why let Uncle Sam and the State have that money interest free during the year out of your pocket? You should rework your withholding and put that money in your pocket during the year. Anyone getting large refunds each year should do the same.

[cso5@]

Yes

Yes, this is the last year for that large a refund -- I have a child who is 16, so next year she won't be counted for the child tax credit -- that is $1,000 of it right there.

Now, I will pay tuition, but I don't think it will be equal to that $1,000 child tax credit.

Also, like the last time they so generously gave us some of our taxes back -- isn't that nice? Overtax everyone and then "decide" to give some back early -- we will all get a statement saying, the government gave you $900 back early, you have to take that off your taxes paid, so next year, if I keep withholding the same, I very well may end up owing!!!ess


Grrr. Guess I will check at the middle of next year.