CH13 and tax refunds

[Andyman]

I am selfemployed and pay quarterlies. Whenever I have a refund coming, I always have it applied to the next years taxes. Does anyone know if you can still do that or do you "have" to take the refund and give it to the trustee?

Thanks
Andy

[DOA]

Look at your plan or call your attorney. It is laid out specifically for each case, there is no set amount. When my 13 began it was anything over $500 went to the trustee. When I did my plan modification in 2008 the trustee asked that it continue that way as a stipulation. But the judge felt that the trustee was making out like a bandit due to my medical bills causing me to get 2-3000 back the 3 years I filed (my case began in August of 05, but wasn't confirmed until Feb 06 and just ended this month) so he re-wrote the order for the stipulation as 1/2 of anything in excess of $500 combined state and federal for my final 2008 taxes. So it's kind of up to the trustee and judge, and is already in place in your documents.

[lrprn]

I am selfemployed and pay quarterlies. Whenever I have a refund coming, I always have it applied to the next years taxes. Does anyone know if you can still do that or do you "have" to take the refund and give it to the trustee?

You need to ask your lawyer. There's a wide variation between how local court Ch 13 trustees handle tax refunds - the bk law does not specify what to do with tax refunds in Ch 13, so Ch 13 trustees do whatever they personally consider reasonable.

In general, if your local trustee sets the max amount you can keep or takes all of your tax refund no matter how big it is every year you are in Ch 13, then you will have to get the refund and give him/her whatever they state they want of your return. You won't be allowed to apply your refund to next year's taxes any longer as long as your plan is active.

However, if your trustee is one of the rare ones who doesn't care about your tax refund and lets you keep all of it no matter how big it is, then it's likely you'll be able to keep on doing what you're doing.

Ask your lawyer what your local Ch 13 trustee does.