For complicated reasons, for the first seven months of this year, I received most of my wages on a regular paycheck but a portion of my wages paid via non-payroll check (no withholding... yet) and recorded as far as the company is concerned as an employee advance. This is not a bonus, it's simply a small portion of my regular wages. That "advanced" money is to be paid through payroll (taxes withheld) as a lump sum this fall at the same time that the "advances" are paid back. Not sure if it matters, but I won't see the money again on the second time... the same payroll check will include the lump sum (credit) and repayment (debit).
In all instances of how this might be done regarding our impending joint Chapter 7, I will report all income.
My concern is that while I consider that I've been paid my regular wages, just in an odd manner than requires some adjustments to get the taxes right, an argument might be made that until the money goes through payroll it is a debt to my employer and an expectation of future "bonus" pay. I don't want to file before it flows through payroll and have the "debt to my employer" discharged, the future "bonus" pay taken by the trustee, and then we still have to put that money through payroll to get the taxes right... after which I'd owe my employer the money back without actually getting it through payroll (if the trustee took it).
Then again, perhaps it can be legitimately stated as being paid the correct amount of wages each month (as it was), with just some accounting to clear up still.
Again, I have no intention of trying to hide this income. I just need to understand how to account for it in a way that doesn't result in a financial loss to me.
Should I have my employer put the money through payroll right now? (We're past the odd circumstance and had planned on putting it through payroll in September anyway.) Is there a liability to having a larger (about $4K) lump payment and "debt" repayment to my employer right before filing bankruptcy?
Anyone have specific knowledge about this?
Finally, no, I'm not divorced/-ing and I'm not trying to hide money from my wife!
In all instances of how this might be done regarding our impending joint Chapter 7, I will report all income.
My concern is that while I consider that I've been paid my regular wages, just in an odd manner than requires some adjustments to get the taxes right, an argument might be made that until the money goes through payroll it is a debt to my employer and an expectation of future "bonus" pay. I don't want to file before it flows through payroll and have the "debt to my employer" discharged, the future "bonus" pay taken by the trustee, and then we still have to put that money through payroll to get the taxes right... after which I'd owe my employer the money back without actually getting it through payroll (if the trustee took it).
Then again, perhaps it can be legitimately stated as being paid the correct amount of wages each month (as it was), with just some accounting to clear up still.
Again, I have no intention of trying to hide this income. I just need to understand how to account for it in a way that doesn't result in a financial loss to me.
Should I have my employer put the money through payroll right now? (We're past the odd circumstance and had planned on putting it through payroll in September anyway.) Is there a liability to having a larger (about $4K) lump payment and "debt" repayment to my employer right before filing bankruptcy?
Anyone have specific knowledge about this?
Finally, no, I'm not divorced/-ing and I'm not trying to hide money from my wife!
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