I am preparing to file for Chapter 7 and am very happy to have found this forum! A lot of my questions have been answered, but I have a couple more about calculating income for Form 22A and Schedule I that I was hoping to get some help with. (FYI I have a copy of the NOLO book, How to File Chapter 7 Bankruptcy).
I am an artist and also work in film production. As a freelancer I am self-employed, with most of my income reported on 1099s and declared on Schedule C for tax purposes. I assume this means that I should classify my income as coming from "operation of business or profession" for both of the forms mentioned.
Regarding Schedule I, I would love some guidance on how to calculate my "current income." I did not have any income for the first six months of this year, then worked on a low-budget film for the summer. Now I am back to having no income again for the foreseeable future. So, should I add up my income for the last 12 months, deduct my business expenses, and divide by 12 to get the average? Or, since I won't have any projected income at the time of filing, is it acceptable or even advisable to put a big "0" as my current income?
Also, the NOLO book suggests attaching your Schedule C to serve as a detailed statement of income. Seeing as how I won't be filing until very late in the 2009 tax year, won't my 2008 Schedule C be a bit dated at this point? Will the trustee want something more current?
Regarding Form 22A, most of my income for this year was 1099/self-employed income, but 2 weeks was paid on payroll. Do I need to list the payroll income on Line 3 and put the 1099 income on Line 4, or can I lump them together since I was basically doing the same thing but being paid differently?
Lastly, what if any documentation will the trustee require as proof of my income and/or expenses with respect to both forms? I do not have any check stubs or payment advices for my income, other than for the two weeks I was on payroll (over 60 days ago). I plan on bringing my bank statements to the 341 meeting, but they don't really show everything since I sometimes cashed checks instead of depositing them. And will I be asked to provide receipts for any expenses that I claim on Line 4(b) of Form 22A?
Thanks so much for any advice or suggestions!
I am an artist and also work in film production. As a freelancer I am self-employed, with most of my income reported on 1099s and declared on Schedule C for tax purposes. I assume this means that I should classify my income as coming from "operation of business or profession" for both of the forms mentioned.
Regarding Schedule I, I would love some guidance on how to calculate my "current income." I did not have any income for the first six months of this year, then worked on a low-budget film for the summer. Now I am back to having no income again for the foreseeable future. So, should I add up my income for the last 12 months, deduct my business expenses, and divide by 12 to get the average? Or, since I won't have any projected income at the time of filing, is it acceptable or even advisable to put a big "0" as my current income?
Also, the NOLO book suggests attaching your Schedule C to serve as a detailed statement of income. Seeing as how I won't be filing until very late in the 2009 tax year, won't my 2008 Schedule C be a bit dated at this point? Will the trustee want something more current?
Regarding Form 22A, most of my income for this year was 1099/self-employed income, but 2 weeks was paid on payroll. Do I need to list the payroll income on Line 3 and put the 1099 income on Line 4, or can I lump them together since I was basically doing the same thing but being paid differently?
Lastly, what if any documentation will the trustee require as proof of my income and/or expenses with respect to both forms? I do not have any check stubs or payment advices for my income, other than for the two weeks I was on payroll (over 60 days ago). I plan on bringing my bank statements to the 341 meeting, but they don't really show everything since I sometimes cashed checks instead of depositing them. And will I be asked to provide receipts for any expenses that I claim on Line 4(b) of Form 22A?
Thanks so much for any advice or suggestions!