New to chapter 13 - tax season question.

[Ifonly]

CA, yes, IRS, no. Federal taxes paid are not deductible on your federal tax return.

[LadyInTheRed]

- I'm assuming from what was written that is up to the creditor(s) whether they want to send me one or not? Is it something I have to have by a certain date and if I don't get one I can just go ahead and file? Thanks again.

The instructions for form 1099c say to file the form in the year the reportable event occurs. But, the language doesn't really seem to indicate a strict deadline. I think most creditors will probably send it in the year of the cancellation or soon after the end of the year. The instructions for 1099c are at http://www.irs.gov/pub/irs-pdf/i1099ac.pdf

The preparer from H&R Block may not have been totally offbase in inquiring as to when a debt was "forgiven" in determining whether or not some additional reporting might be required on an individual's income tax return.

The preparer wouldn't be off base to ask if the OP settled debt before filing BK and then say that would require additional reporting on the return. But, to simply say that filing Chap 13 requires an "in depth return", without first asking that simple question, is offbase, IMO.

Any debts included in the Chapter 13 filing should not be reflected on a 1099C and should be contested with the issuer if a 1099C is actually issued.

I wouldn't bother fighting it if a creditor issues a 1099c for discharged debt. It seems much easier to just attach form 982 to your return than to try to convince a creditor they shouldn't have issued the 1099c.

CA, yes, IRS, no. Federal taxes paid are not deductible on your federal tax return.

And, don't forget that California refund is taxable income on your federal return in the year the refund was paid. Receiving that 1099 from the FTB can be quite a shock if you received a large refund.

[toojerm]

If you're in a 100% plan as you stated, then the trustee does not require your tax refund info. They can't take any more than you owe (plus trustee fees). I am 3 years in on a 100% plan, and haven't heard from lawyer, trustee, or court, just check 13datacenter to make sure the plan is disbursing funds. Your returns are yours as far as the trustee and court go, if there is IRS debt, that is a different story.