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Earned Some extra $$.. now questions

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    Earned Some extra $$.. now questions

    Here's the scenario
    1) I am not confirmed yet.....
    2) I was able to pick up some consulting work and made about $6000.00
    3) The company I did the work for will issue me a 1099 so no taxes will be taken out
    4) I am intending on reporting this income to the trustee via my nearly useless atty.
    5) and finally It is unlikely that I will be paid prior to my 3rd confirmation hearing!

    the questions I have is
    a) do I report the full amount pre taxes? and advise that this is pre tax income?? ( I know I will have to pay about 40% in taxes remember this is 1099 and will have to pay double SS taxes too!)
    b) do I advise the post tax amount
    c) should I just put it in my income for 2010 taxes after I pay the taxes I owe then give her all funds when I file in April???
    d) or just send her a cashiers check for the post tax income and say nothing?

    Also seeing as I already have a "plan" do I wait until after confirmation??

    ps trustee wants all tax refunds, all pay increases, all bonuses, so I will be paying to the trustee one way or another. (it almost feels like I am being set up to fail..... ).

    and I DESPISE my atty and will be firing her when I am finally confirmed and reporting her to the bar association.... (read some of my other posts!)
    Filed 7/17/10 1st 341 8/17/10 2nd 341 9/16/10 1st confirmation 10/06/10 2nd confirmation 11/10/10 Bar Date 11/15/10 3rd and final confirmation hearing Dec 8 and acceptance of plan Dec 29 2010....

    #2
    A question first.....will adding $6,000 to your usual annual income raise your total income more than 10%? Typically that's the tipping point for many trustees for how much of an increase they want to see in your income before they start to squawk. Now your trustee may be different, so I'm asking just to give you another perspective that your lawyer may not have mentioned.

    Also what more than a few Ch 13 lawyers have advised their clients in this situation is to let your income tax forms next year reflect the extra income. When your trustee receives your signed tax forms for this year, you've notified your trustee about the extra income (Of course, you should seriously consider hanging on to the extra income cash in a high-interest, no early withdrawal penalty savings account in case your trustee does pull the trigger and asks for it. But until then, it does earn you some interest.)
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !

    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go

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