Amended Old Tax Return Effecting Income, Spouse

[alo]

Just found out I may be able to submit an amendment for our 2010 tax return and will be due about 5K. Will this effect my income as they evaluate it now for either Ch7 or Ch13? Should I hold off on sending it to the IRS until my BK is finalized.

Since I am the only one filing BK, and this was a joint return, is half of it my husbands for use as he chooses?

Obviously, if we do receive the funds pre-BK, we'd like to use it on allowable expenses (like a mammoth shopping spree or a new a/c unit!)

[LadyInTheRed]

I don't know if the $5,000 will be considered income. But, if your current withholidng will still result in a sizeable refund at the end of the year, the income taxes that you list on your petition as an expense should be lower than what is actually withheld.

I believe half of the refund would be your husbands, but check with your attorney to be sure.

The refund is an asset that you must list on your petition if you file BK before receiving the refund, even if you wait until after you file BK to file the amended return.

If you file BK after receiving the refund, be careful about any massive spending spree. You don't want to purchase non-exempt assets. A new a/c unit should be okay, assuming it is attached to the home and not a portable one.

[justbroke]

It is too difficult to determine if an attorney (or the Trustee) would see it as either income in 2011, or income in 2012! That's the real kicker. (Florida is not a community property state, so the question of entitlement to 50% is usually a question of equity... did both spouses work? If so, then it may be a 50/50 thing.)

Be certain to ask the 3-5 attorneys that you interview about this. I would not hide it because holding the amendment off until after the BK, could be seen as actual fraud (hiding, delaying or defrauding creditors).

[alo]

Thank you both.
Yes, we both worked but I earned more as my husband had started a new business. And, I definitely will not spend it on anything but exempt assets or living expenses.

Does anyone know if repaying money taken out of a Roth IRA is allowed?