monthly taxes on means test

[Sick&Tired]

My husband and I are trying to file chapter 7. So far we haven't qualified (per the means test online). However, I haven't been putting anything down for his monthly income taxes (just his gross income, my gross income, and MY monthly income taxes). He is self employed and does not pay his income taxes until the beginning of the year (just once a year). Should I take an average of that number and add it into the means test for his monthly income taxes? Otherwise, it looks like he makes WAY more than he actually does in a year. I'm grabbing for straws people, we need chapter 7 desperately! Any help would be really appreciated!

[rilbrianne]

Yes, I would say calculate it into monthly amount like that...average the whole year into $/month.

[rilbrianne]

Also, have you thought of every possible expense? Such as diapers/wipes for baby, formula, any expenses he may incur for work, kids dance class, etc. There are a lot of acceptable expenses.

?? Have you tried that already?

[Sick&Tired]

We don't have any babies yet, just two canine kids! I just took 3.5% of his average monthly income and plugged in into the means test. Think that's accurate?

[lrprn]

However, I haven't been putting anything down for his monthly income taxes (just his gross income, my gross income, and MY monthly income taxes).

S&T, I'm confused about "his monthly income taxes". Gross income includes the amount that will be taken out for income taxes. Can you explain these extra income taxes in more detail?

[Sick&Tired]

No taxes ever come out of his paychecks. He pays one big tax bill when we do our taxes in April. So what I wasn't sure of is should I just take 3 or 4 percent of his monthly income and use that as his monthly income tax on the means test or do I have to leave it blank since technically he doesn't have taxes withheld from his paycheck every month (the're paid @ the end of the year).

[jec]

taxes

You said he was self employed so you know that he will pay what they call the self employment tax which is really your medicare and social security. This will be 15% of his income and the regular tax would be what ever category you are in

hope this helps

[Boscoe]

Need to run this by your attorney and make sure it is correct......

[rilbrianne]

Your getting mixed answers. I'm not sure how to answer this. He does pay it and it should be included but how to include it? I still say divide the amount by 12 and you'll get an average monthly amount he pays in towards taxes. It says on the paperwork to calculate everything into monthly values so that's what I think.

Definitely consult a lawyer, even if you don't have one.. call one and quickly ask your question. I did that.