tax refund

[glc4122]

yes, i have a question if you receive your tax refund before you file can you keep it or have to turn over to trustee?

[Flamingo]

Your tax refund will be included in your income received in the average six month look back of providing financial information to your attorney/trustee. If you spend it, I would keep receipts for everything you buy in case you are questioned what you used it for.

[tallberry]

Are you sure, Flamingo? I was just instructed by my attorney to file my taxes, get my return and take care of care repairs, stock up on groceries, pay the electric bill, etc. with it. He did not say that the amount I received from our tax return would have any effect on our income in regards to filing. If this is correct, I wish he would have told us this!

[Flamingo]

Are you sure, Flamingo? I was just instructed by my attorney to file my taxes, get my return and take care of care repairs, stock up on groceries, pay the electric bill, etc. with it. He did not say that the amount I received from our tax return would have any effect on our income in regards to filing. If this is correct, I wish he would have told us this!

You will have to disclose income you received for at least six months prior to filing. Your tax refunds, state and federal, is income received and will have to be disclosed. I would certainly hold receipts for all items you purchased with your tax refund if you plan to file within the next six months so you can explain where the money went if necessary.

[yak411]

I am not sure if you will have to turn it over. I am in Chapter 13 and confirmed and was told by my attorney that I do not have to turn my refund in at all. I only need to file. I am in Virginia.

[tallberry]

I believe the tax return is considered an asset, not income. Therefore, you would have to disclose your tax return (and find a way to exempt it) but not include it as part of your income in your six month worth of wages prior to filing. You are right on the receipts, my attorney instructed us to keep all of them!

[Cali]

I thought tax refund was considered income, but am not sure.

We are only getting 285$ back, so that won't be much either way.

[monkatom]

My understanding is that it is not income as it is a tax refund. My attorney did not have me include it and I belive in other threads most have said it does not count as income on the means test.

[keepmine]

You are asked for gross income when you file. Any potential tax refund is already accounted for as far as means test purposes.
It may or may not be considered an asset of the k estate. That depends on your state exemptions as well as the custom of the trustees in your district.

[danaf]

As keepmine said, it is definately not added onto your income as it is money you already made. However it is considered a cash asset. So if you haven't already spent it, or are expecting it before filing - make sure you have enough reserve exemptions to cover it. ie if the state you are in allows $2500 cash on hand or savings in the bank, and your return is 2k - then you could include it in the exemptions. I wouldn't guess as to what t he trustees in your district may or may not do. Either spend it on items you need, or find a way to exempt it. Another possible exemption might be putting that money into an IRA but you have to look at your state rules about that. Some states have time limitations where it concerns converting cash into an IRA ahead of BK.