tax refund

[okane]

What happens if you spend all your tax refund befor eyou file and cannot provide all receipts for what your tax refund was spent on?

[justbroke]

Nothing. If it's not in your checking account on the day you file, you will only need explain. If you can't account for every penny, it's usually not a problem. They are looking for BIG expenditures and mostly at things they can recover.

For example, if you took refund and paid off an unsecured creditor, to the tune of more than $600, then the Trustee would seek to recover (avoid) that payment(s). This really doesn't affect you since the Trustee sues the creditor.

Be aware, that your friends and family are creditors. if you "pay them back" for loans, they too can fall subject to the Trustee's avoidance powers and be subject to lawsuit.