Category Archives: Personal Taxes

Find out more about how your income taxes affect filing for bankruptcy.

Can I Discharge Income Tax Debt in Bankruptcy?

The 2018 tax filing season ended on April 17. For three-fourths of filers, they received a tax refund from the Department of the Treasury. Not everyone is quite so lucky. Some filers received notices from the IRS that they owe taxes. You could face several consequences if you owe the IRS money and are unable to pay. The IRS could garnish your wages to satisfy the tax debts. In addition, they could also place liens on physical properties or levies on bank accounts. You can discharge many debts by filing for bankruptcy. It is more difficult to discharge tax debts. The good news is that is not impossible. You may be able to discharge tax debts in bankruptcy if you meet all of the following criteria. You have income tax debt. Only income tax debts are dischargeable. You cannot discharge other types of taxes in bankruptcy. The taxes are at…
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What are Smart Ways to Spend a Tax Refund?

The IRS officially launched tax season on January 29. You can file your tax return and possibly receive a refund. According to IRS statistics, the average tax refund was $2,782 in 2017. For many of us who receive refunds, it can be tempting to spend it on something we want and not something we need. There are smart ways to spend your refund even if it is smaller than what you were expecting. Save for an emergency: A recent survey published by, a personal finance website, found only 39 percent of Americans could cover a $1,000 emergency. You could save your tax refund to pay for medical bills or rent after a job loss. These are just two examples of emergencies that could cost more than $1,000. Pay off your debts: You could use your tax refund to pay off student loans or credit cards with high interest rates….
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Could the Federal Government Garnish My Tax Refund?

Are you looking forward to receiving a tax refund this year? On January 29, the IRS will begin accepting tax returns. However, you should be aware that your tax refund could be offset by the Department of the Treasury or the IRS for certain kinds of debts. Your tax refund will not be offset to satisfy private debts. The Department of the Treasury’s Bureau of Fiscal Service (BFS) or the IRS could offset your tax return for debts that include: Defaulted student loans: The BFS could offset your tax refund if you have defaulted on any type of federal student loan. FFEL and Direct loans are in default after at least 270 days of nonpayment. You could choose several options for getting out of default to prevent a tax refund offset. Unpaid child support: Your tax refund could be offset if you have failed to pay court-ordered child support. State…
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