planning to file this week - can they take my 2010 refund?

[wendyfou]

I'm planning to file this week if possible.

I am HOPING to get a 2010 income tax refund. Can they take that?

[wipetheslate]

If you can't exempt it, yes, the trustee can take it.

[tcreegan]

Hi wendyfou,

A quick glance at the Ark exemptions and I didn't see any way to exempt a tax refund. The trustee will be allowed 11/12 of the refund....but that doesnt necessarily mean they will go after it; seems that some trustees are fanatical about taking tax refunds but some aren't. It also depends on size, they might not want to bother with small amounts.

It is highly variable by trustee.....like the old saying goes....hope for the best but be ready for the worst....

Tom in Colo

[wendyfou]

what about if i OWE for state and expect a REFUND for federal? last year i paid my state income taxes WITH part of my federal refund? will they offset a portion of my federal refund to reflect the state taxes i may owe? seems only fair...

[tcreegan]

Hi again wendyfou,

seems only fair... ...remember this is BK law we are talking about....only slightly more arcane than IRS code....

To be a legal offset, I think the state tax people have to talk to the federal tax people and some papers change hands.

I'm afraid you might be at the mercy of your trustee. But you can always ask, who knows, the trustee might be in a good mood that day.....

You could start a thread asking for people who have experience w/ the trustees in Little Rock.....ours wasn't interested at all in our tax refund, we had a ~2K the year before but he never said a word about this year. On the other hand, someone posted that the trustee stood up and announced to all that she was taking everyones tax refund.

Hopefully Little Rock trustees are more like our trustee...

Tom in Colo

ps: State Capitol in LR is very nice!

[Fallonedward]

I'm so grateful I was able to exempt mine.

If you can't exempt it, yes, the trustee can take it.

[mommi2many]

I'm so grateful I was able to exempt mine.

Me too!

[BKlooker]

Hi wendy....welcome to the forums!

In my state, there is a 'wild card' exemption that covers any cash or physical asset, up to 6K in value. In my case, my lawyer advised me not to mark the refund on the paperwork yet, as my trustees/state doesn't usually start coming after them until february. But in my case, my full wild card exemption is still open, so if they do try to cop it, my lawyer said we can simply amend my paperwork to exempt it at that time, no big deal, just a small fee.

In his experience, it's best to run under the rader about it until they ask...but like TC said, it's a highly variable thing from state to state, trustee to trustee, etc. How much are you looking to get back? In looking around the forums, in a lot of cases, if it's less than a grand, they may just leave you alone about it.