Tax Refunds

[rjl0206]

How many of you keep all or most of your tax refunds? what differentiates you from keeping it or losing it to the trustee? 1005 payback etc? thanks.

Ray
Filing in NJ btw.

[rrockinggramma]

tax refunds are governed by local rules of the bk court district. Research your trustee website to find out where his position is on the subject. In Michigan, ALL Fed refunds are taken by the trustee but the State of Mich refund is yours to keep. In fact, not turning over the federal refund to the court will get your case dismissed in a heartbeat.

[optimistic1]

rrockinggramma is correct.

However, when you finally get a confirmed plan, be sure to utilize the IRS's withholding calculator, which will help you determine how you need to adjust your withholding allowances, so that you take more money home every month.

The result is that you DO NOT get a tax refund, you just break even. And the trustee gets nothing.

Be sure to keep your current allowance set to 0. That is what I have read. How valid it is, I dont know.

[Mi Bankruptcy]

tax refunds are governed by local rules of the bk court district. Research your trustee website to find out where his position is on the subject. In Michigan, ALL Fed refunds are taken by the trustee but the State of Mich refund is yours to keep. In fact, not turning over the federal refund to the court will get your case dismissed in a heartbeat.

Interesting. I just had my 341 today and I exempted my tax return(6k) The trustee didn't say anything about taking it. It was pretty much.. thanks and I don't expect to see you back here. So, I am in the 60 day club

Edited... Sorry.. This is the CH13 thread.. I was 7 no asset