Have to spend tax refund?

[jribe]

Hi Everyone,

I'm in California and there is a 20,000 exemption if you don't have a homestead.

I'm filing for BK May 1st, and am working on my taxes.

I am expecting about 5,000 back- and am confused about if i have to spend it before i file?

I have seen a lot of posts on here about people saying that. But i was assuming it was just they didn't have the exemptions to cover it?

We could buy my husband a used car for work to use it if we need to spend it before filing.. But in all honesty i would really like to just save it.

Thoughts?

[JRScott]

If you can cover it using exemptions then you should be fine.

If not then you should spend it on approved expenses: home maintenance, vehicle maintenance, property taxes, dental visit, eye visit, etc.

[epiphany]

Hi Everyone,

I'm in California and there is a 20,000 exemption if you don't have a homestead.

I'm filing for BK May 1st, and am working on my taxes.

I am expecting about 5,000 back- and am confused about if i have to spend it before i file?

I have seen a lot of posts on here about people saying that. But i was assuming it was just they didn't have the exemptions to cover it?

We could buy my husband a used car for work to use it if we need to spend it before filing.. But in all honesty i would really like to just save it.

Thoughts?

Yes, you can keep it if you have enough exemption to cover it. Just make sure to include the asset in your filed paperwork.

ep

[jennordhavn]

I'm in CA also. I listed "Anticipated Federal Tax Refund" of $1500 on my assets and as an exemption (using the wildcard) just in case.