Tag Archives: TaxRefund
This is syndicated content that was originally published on AVVO.com by Attorney Christopher J. Cusack of Sader Law Firm. A common question people have when filing for Chapter 13 bankruptcy is: “What’s going to happen to my tax return?” The answer hinges on a few variables, which determine whether the refund must be turned over to the Chapter 13 Plan, kept for personal use, or divided between the two. Refunds Turned Over to the Plan There are instances where tax refunds are turned over to the Chapter 13 Plan. The one a debtor is almost guaranteed to encounter has to do with the tax return being a pre-petition asset. When you file your Chapter 13 bankruptcy, your attorney files the Petition for Relief. The filing of the petition creates a symbolic division between the assets, liabilities and earnings that accrued before filing from those that accrue afterwards. When you file for…
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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 Bankrate.com, 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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Many people who recently filed their tax returns will receive tax refunds. However, those who have past-due government debts may see some or all of their tax refunds garnished. Federal and state governments can offset tax refunds to pay back debts. Common reasons filers see are subjected to a tax refund offset include: Past-due income taxes take priority over all other types of debts owed to the government. Tax refund garnishments are used to offset these debts first. Defaulted federal student loan debts are a very common reason people have their refunds garnished. These debts can be delinquent, but once they default they can be garnished from tax refunds. The Federal Tax Refund Offset Program can take tax refunds from filers who owe past-due child support payments. This program is a collaboration between the Office of Child Support Enforcement and the IRS. Tax refunds are garnished for debts owed to…
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