Tax Refunds and Bankruptcy

Tax Act

When it comes to making the decision to go bankrupt, you need to be aware of just what the benefits will be.  If wiping your financial slate clean means that you will lose your house, savings, and assets, perhaps it would be best to consider other options.  When it comes to tax refunds and bankruptcy, here are some tips to protect the money owed to you by the government.

First of all, you should be aware that your tax refund can be a part of your bankruptcy estate, meaning that the court-appointed trustee has access to it and can part or all of it to pay off your creditors.  It is the part of the refund that was accrued the date of petition that belongs to the bankruptcy estate, therefore, the time of the year that you file bankruptcy makes a big difference to the amount of money you are due to receive.  If you submitted a joint married tax filing but only one of you is claiming bankruptcy, the joint tax refund may be at risk.

•    Change your exemptions – if you usually receive a large tax refund and are thinking about filing bankruptcy in the future, increase you exemptions to reduce the amount of money to be refunded.

•    Delay your petition – unless you are facing an immediate foreclosure, lien, or garnishment, delay filing for bankruptcy until you have received your refund then use it to buy necessities.

•    Submit a W-5 – Your Advanced Earned Income credit can be transferred to you on a weekly, monthly, or quarterly basis.  This ensures that you can receive it and spend it without losing it during bankruptcy.

Dealing with tax refunds and bankruptcy can be especially stressful as you obviously don’t want to lose any more than absolutely necessary.  Consult a qualified bankruptcy attorney to discuss options of how to hold onto your tax return.

For more information about filing personal bankruptcy, please visit claimingbankruptcy.net.

Free Federal Tax Filing from the Biggest Name in Online Preparation

Tax Act


Free Federal Tax Filing from the Biggest Name in Online Preparation

Intuit’s TurboTax is now offering free online tax filing for your simple federal tax return. Get free preparation, free printing, and free eFiling if you are filing a 1040 EZ form this tax season. You are guaranteed to get the biggest tax refund available based on your personal information. Answer simple questions about your tax situation, get the best refund available by a complete review of every credit offered and file your return online for free so you get your money back in as few as 8 days.… Read more at 2008 Taxes.

Tax Act


Free Federal Tax Filing from the Biggest Name in Online Preparation

Intuit’s TurboTax is now offering free online tax filing for your simple federal tax return. Get free preparation, free printing, and free eFiling if you are filing a 1040 EZ form this tax season. You are guaranteed to get the biggest tax refund available based on your personal information. Answer simple questions about your tax situation, get the best refund available by a complete review of every credit offered and file your return online for free so you get your money back in as few as 8 days.

Help and Tax Savings Tips

With your Intuit TurboTax return you’ll also get the best in help and tax savings tips. Intuit provides a Live Community where you can ask other users for real time answers you need and when you need them. While completing your tax return, TurboTax also provides you with tips and help specific to the area you are working on. And if you’ve had an event that will make a difference with your return like purchasing a new home, becoming a parent, or changing jobs, TurboTax Federal Free Edition will explain how the change has altered your return and your refund.

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