Chapter 7 & Federal Taxes...

[heidiheidi87]

I file my taxes myself (okay, HRBlock online does ). Is there anything different that needs to be done since I filed, and was discharged (Ch.7) in 2010? I didn't/don't owe the state, or the government any taxes...no tax liens, or anything of the such.

[free2breathe]

Check this link out. It will tell you pretty much everything you need to know about filing taxes and bankruptcy. http://www.irs.gov/publications/p908...link1000137310

eta: also do a search on "bankruptcy" when you are logged in to H&R...they may have more information. Bankruptcy doesn't get listed on your return, and if you have a no-asset Chapter 7, it's a breeze

[chicagoannie]

Check this link out. It will tell you pretty much everything you need to know about filing taxes and bankruptcy. http://www.irs.gov/publications/p908...link1000137310

eta: also do a search on "bankruptcy" when you are logged in to H&R...they may have more information. Bankruptcy doesn't get listed on your return, and if you have a no-asset Chapter 7, it's a breeze

F2B - what if one receives a w-2 from a bank for fees? My old bank account was closed with -294 in it - 2 months of $5 per day fees because my account dropped below minimum. The bank reported this to the IRS. Is there something I must do on my tax return to indicate this account was included in my no asset Ch 7?

[free2breathe]

F2B - what if one receives a w-2 from a bank for fees? My old bank account was closed with -294 in it - 2 months of $5 per day fees because my account dropped below minimum. The bank reported this to the IRS. Is there something I must do on my tax return to indicate this account was included in my no asset Ch 7?

They sent you a w2 and not a 1099? I'm not sure on this...have never heard of such a thing. I'll poke around and see what I can find though.

[panda]

From what I have read on this subject is that some places use the forms when no form should be sent. I have seen this with the 1099 forms with wrong boxes checked, the w2 is a mystery, but to be on the safe side I would use the IRS form 982 and check 1a) for bankruptcy, do not include the amount as taxable on your 1040, then attach the form with your discharge paper, or maybe write on the form your bk number and if the IRS needs more info they will contact you. From what I have been reading they are used to this happening and know that it would be impossible to get the document corrected by a place you did a bk with.

[free2breathe]

panda was quicker than me

[free2breathe]

I'm pretty sure that if the bank uses that loss as a tax write-off, they are obligated to file the 1099 with the IRS. How it affects their customer depends entirely on the customer's situation. The average customer would have to include that 1099c as income, but since we've filed bankruptcy and discharged that debt, it does not count as income for us.

[heidiheidi87]

Thanks, all! Panda, that was exactly what I was looking for.