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Now I know why I used a lawyer for my bk....

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    #1

    Now I know why I used a lawyer for my bk....

    Just getting a baseline figure for my income tax refund which the trustee is so anxiously awaiting....well, the joke may be on him!

    just doing a basic 1040 calculation with my income minus standard deduction & then looking at the tax...I look like I would be only getting back $60.00.

    This figuring does not account for claiming my children as dependents...would that give me more $ back...and if so, must I claim it like that or would the trustee get pissed off if I decided not to?


    Hmmmmm.....Does anyone understand what I'm asking?
    Filed Oct 2005discharged February 2007,Shapeless in the fire's glow, tell me if you think you know,
    Who it was we were below, where we've been and where we go
    Tags: None
    #2
    If you do not have custody of your children, your ex would probably win out on the right to claim them. (It goes to whoever provides 51% of their support.)
    Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

    Comment

      #3
      Ok, here's the catch...

      Originally posted by StaciMM
      If you do not have custody of your children, your ex would probably win out on the right to claim them. (It goes to whoever provides 51% of their support.)

      It was written in my divorce decree that I would have the children as a tax deduction...when we revised the custody situation, that issue was never changed. I have claimed them for the past five years.

      So...????
      Filed Oct 2005discharged February 2007,Shapeless in the fire's glow, tell me if you think you know,
      Who it was we were below, where we've been and where we go

      Comment

        #4
        Hummmm............

        If you can choose, I'd go with the common good over lining one person's pocket.
        Filed Ch 7 - 09/06
        Discharged - 12/2006
        Officially Declared No Asset - 03/2007
        Closed - 04/2007

        I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

        Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

        Comment

          #5
          Well, just remember that IF the trustee were to find out about it later it could mean big trouble for you. I hope you weren't planning on amending that return later to get that money yourself?
          edited cause I left a word out lol

          Comment

            #6
            Keep in mind that if you claim the kids, you get at least a portion of the refund. (Is stiffing the trustee worth giving that up?) Claiming the kids can make a big difference, to the tune of about $1000 per child if you can use the child tax credit.
            Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

            Comment

              #7
              ok...so now you all have me totally confused...

              what would be best? to claim them or not to claim them this year? I hate to deviate from the norm on this issue...

              I had originally had like 4 exemptions on my W-4's but someone changed it to zero so until I take my taxes in...hopefully, tonight...I paid off $18K to the IRS in 2/05 which was taken out of my SEP...and I had the taxes already taken out as well...so I really can't do an easy 1040 this year myself....just from doing a co-worker's 1040...w/standard deductions, he had only 1 exemption and it looks like he owes about $100 even with the standard deduction...I made $23,500 last year...& have two children...no itemization to speak of...Florida just has federal tax...
              Filed Oct 2005discharged February 2007,Shapeless in the fire's glow, tell me if you think you know,
              Who it was we were below, where we've been and where we go

              Comment

                #8
                Just based on your income, not trying to calculate anything for the SEP:

                If you file single w/ no dependents, w/ $23,500 income your total tax for the year will be $1930. Deduct what you've paid in-if you paid more than $1930, you get a refund and if you paid less, you owe.

                If you file single w/ dependents but no child tax credit (I don't know if you can claim it when they're not living with you) then your total tax is about $970. You will get back nearly $1000 more than if you don't claim the kids.

                If you file single w/ dependents and child tax credit, you have no tax liability and would get back about $1000 in addition to any taxes you paid in.

                If you claim the kids and qualify for filing as head of household, then you'll get back an additional $350 or so.

                This does not consider EIC-if you can claim it, that would add more refund if you claim the kids. I'm not sure if you can claim EIC, child tax credit, or head of household when the kids don't live with you.

                In the end, if you get more refund the trustee will likely take a chunk of it based on your file date. But if you don't use the exemptions you're entitled to, you will lose money also-the trustee can't take 100% of it! He can only take the % for 2005 based on your file date. Stiffing the trustee keeps money out of your pocket also.
                Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

                Comment

                  #9
                  Originally posted by StaciMM
                  Just based on your income, not trying to calculate anything for the SEP:

                  If you file single w/ no dependents, w/ $23,500 income your total tax for the year will be $1930. Deduct what you've paid in-if you paid more than $1930, you get a refund and if you paid less, you owe.

                  If you file single w/ dependents but no child tax credit (I don't know if you can claim it when they're not living with you) then your total tax is about $970. You will get back nearly $1000 more than if you don't claim the kids.

                  If you file single w/ dependents and child tax credit, you have no tax liability and would get back about $1000 in addition to any taxes you paid in.

                  If you claim the kids and qualify for filing as head of household, then you'll get back an additional $350 or so.

                  This does not consider EIC-if you can claim it, that would add more refund if you claim the kids. I'm not sure if you can claim EIC, child tax credit, or head of household when the kids don't live with you.

                  In the end, if you get more refund the trustee will likely take a chunk of it based on your file date. But if you don't use the exemptions you're entitled to, you will lose money also-the trustee can't take 100% of it! He can only take the % for 2005 based on your file date. Stiffing the trustee keeps money out of your pocket also.
                  my federal tax that I paid in was $2,466.00. I don't think I qualify for the EIC. Taking my info into the accountant soon...It would be nice to get something back...I'll go for it...I wonder how long it takes the trustee to get some $ back to me after he gets my return & refund?
                  Filed Oct 2005discharged February 2007,Shapeless in the fire's glow, tell me if you think you know,
                  Who it was we were below, where we've been and where we go

                  Comment

                    #10
                    AmIslander, If you've been claiming the kids, do so again. Your main concern should be the IRS, not the trustee. If you do not claim them this year and then do next year, you stand a good chance of being audited and regardless of what the divorce decree says, if you do not have custody of them 51% of the time, they can take that away. This is one of the areas that they monitor.
                    Just file as normal. Get your life back to normal. Get on with living and planning around your BK. Thank God that it's almost over. Art

                    Comment

                      #11
                      You aren't kidding!

                      Originally posted by AAAArt
                      AmIslander, If you've been claiming the kids, do so again. Your main concern should be the IRS, not the trustee. If you do not claim them this year and then do next year, you stand a good chance of being audited and regardless of what the divorce decree says, if you do not have custody of them 51% of the time, they can take that away. This is one of the areas that they monitor.
                      Just file as normal. Get your life back to normal. Get on with living and planning around your BK. Thank God that it's almost over. Art
                      I want to get this tax thing done with...my lawyer called and said regarding the request for refund that I "do not have to send the return, since all they are requesting is the refund! I said, "cool."
                      Filed Oct 2005discharged February 2007,Shapeless in the fire's glow, tell me if you think you know,
                      Who it was we were below, where we've been and where we go

                      Comment

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