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    Question regarding Tax refunds

    Hello, I am new to the forum and the wonderful process of ch 13. I did a rough guesstimate and it looks like I will be getting a state tax refund but owing about the same to the feds. Does anyone know how that works out? I know the trustee wants all refunds but when taxes are owed would it reasonable to use the state refund to pay the federal shortage? A flat tax sure would take out the guesswork.

    Thanks

    #2
    Check with your attorney. In our district it is not allowed to pay one using the other. Has happened to us twice during our plan (paid the State, and sent in the Federal refund to the trustee). I know..it sucks, but it is the way it is. Maybe it will be different in your district.
    Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
    I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.

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      #3
      Thanks for the info, I hope it is not that way where I live. Plan on checking once I get the real numbers but so far, looks like a refund on one and a liability on the other

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