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Tax Refund question

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    Tax Refund question

    Refunds were discussed slightly in another thread, but I have a more specific question. I wonder if any of you have experience with this or might be able to tell me what is likely to happen.

    Usually, we get a refund from Federal, but end up owing $150-200 on state taxes. Before 13, we would just use a portion of the federal refund to pay the state taxes. Do you think the trustee/lawyers would find it acceptable to still do that?
    Filed 13 on 10/23/2012 -341 on 12/17/2012 (Happy Birthday to me!)
    Confirmed 2/6/2013 (Happy Anniversary!)
    I'd be almost done if I hadn't tried the debt settlement program first.

    #2
    It depends on your plan. Will you have to turn over refunds to the trustee or do you get to keep them? If you have to turn them over, then you will not be able to use the federal refund to pay state taxes. You need to ask your attorney this question. If this is a big issue for you, it's better to talk to your attorney now rather than later in case you need to amend your plan before it is confirmed.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

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