what to do with my tax refund...

[Scream2Death]

married, but only i'm planning to file for bankruptcy in the summer...

4 people filling under us, me, spouse, 2 kids

expect to receive 5k in refunds

Question 1)should i put the money in the bank?

Question 2)can i just put it in my spouse's single account, so it doesn't show I have thousands in my account?

Question 3)ask to send refund by mail and cash out?


thanks so much!

[Flamingo]

[QUOTE=Scream2Death;144292]4 people filling under us, me, spouse, 2 kids

Only you and hubby will file bankrupty, not the kids - they are your dependents.

expect to receive 5k in refunds
Question 1)should i put the money in the bank?
Question 2)can i just put it in my spouse's single account, so it doesn't show I have thousands in my account?
Question 3)ask to send refund by mail and cash out?
QUOTE]

If you are filing jointly, putting the money in your spouse's account doesn't matter because he will have to disclose that account information for at least six months prior to filing. It doesn't matter if you auto deposit the funds or cash them out, you will need to provide a copy of your tax return so it's right there in front of them anyway.

[lrprn]

Question 2)can i just put it in my spouse's single account, so it doesn't show I have thousands in my account?

Since you are filng jointly, no matter where you put the money, you have to protect it with your state exemptions.

If you can't protect the whole $5K, then you need to spend what you can't protect for reasonable living expenses BEFORE you file.

Question 3)ask to send refund by mail and cash out?

Get the refund BEFORE you file, then as I said above, spend down to what you can protect with your state exemptions. Ask your lawyer what spending will not raise any red flags in your local court. Then save all the receipts for however you spend the money - getting medical and dental care, buying new clothes for the family, repairing cars, etc.