What would you like to do?
Can the bankruptcy court take the child tax credit or earned income from your taxes?
This would depend on what type of chapter you are filing and at what point it is discharged. If you have already been discharged from the debt then the answer is no. If not, you should have had to provide copies of previous tax returns and this issue would be brought up during the hearing.
Was this answer useful?
Thanks for the feedback!
Can they take earned income credit from a tax return for back child support even though it is being paid now?
Yes they will intercept your taxes until that balance of back pay is paid and current. Then once you are paid you may have to ask that state that intercepted your tax returns …to do a tax offset review. Give all documents that show you have paid and or current, then they may dismiss the lien against you. You may be entitled to a refund from that state.
When you are in a chapter 13 bankruptcy and have to turn over your income tax refund does this include earned income credit?
Answer Probably. It too is an asset. And, if you had savings or an investment with interest available, that too could be used. However, from discussions here i…t seems tax refunds are not always seized as part of the BK process.
Can you claim your child for the earned income tax credit even if your ex is allowed to claim that child for the child tax credit?
Two people can not claim the same child. It's as simple as that. If the judge ordered that he get to claim the child for that certain year. Then he gets to claim him for… whatever deductions apply to him.
All money is income in bankruptcy. Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they w…ill refer you to one.
As a frequent contributor here, I must first apologize for my last response to a combat pay question. I messed that up bad. The whole military pay topic sub catagories l…ike combat pay, which also has many subs and ifs...is a tax world unto itself. I believe the answer to this Q is that you can elect to have it count to EIC. Now I'm not sure that means it's already excluded from CTC already....again a lot of this pay is excluded way before those calcs. There is certainly enough possibilities with this special income to either get software which probably leads you through it, or if using a service, try and chose one near a base that may deal with many of these. (Like a return with farm income & benefits is uncommon to the tax trade in a big city).
This question has been discussed many times here..and there seems to be no hard and fast rule. Certainly, it depends on several things. Most importantly, is what perio…d the overpayment reflected in the refund really relates to. For example, say it is a refund for a year and you filed BK in Dec of that year. Basically, all of the tax you paid in was from pre-petition...had you had the correct amount withheld (or by estimated payment, hence no refund of overpayment being made), presumably (and rightfully) that additional amount would have been available to pay those creditors. Consider, you could have had more (even 100%) withheld and deposited in your account with the Government, that shouldn't mean you get to essentially just withdraw it now. (Had you put it in a bank account you wouldn't expect to). On the other hand, if you file the BK in January, then virtually all the overpayment is due to earnings post petition...which are actually yours and not part of the bankruptcy. Viewed this way, I think the actions make some sense. Add in any complications, like you don't make earnings evenly through the period...and it's a question needing a reasonable solution you may need to propose to the trustee.
a credit agency garnished my income tax,is the the child tax credit exempt from the garnishment?
The EITC is a credit for certain people who work. You (and your spouse, if you are filing a joint return) and any qualifying children listed on Schedule EIC need valid social …security numbers. Find out if you are eligible for the Earned Income Tax Credit (EITC) by answering some questions and providing basic income information. The program will also assist you in determining your correct filing status, determining whether your child(ren) meets the tests for a qualifying child, and estimating the amount of credit you may receive. However, if you were denied the EITC due to a reckless or intentional disregard of the rules, you cannot claim the EITC for the next two years after the denial. If your error was due to fraud, you cannot claim the EITC for the next ten years after the fraud determination. An online system exists to check your qualification and tell you how much you'll get at: http://apps.irs.gov/app/eitc2007/SetLanguage.do?lang=en Basics: You may qualify for the Earned Income Tax Credit, or EITC, if you worked last year, but did not earn a lot of money. EITC is a refundable tax credit meaning you could qualify for a tax refund even if you did not have federal income tax withheld. To qualify for the credit, you must: * Have a valid Social Security Number (if you are filing a joint return, your spouse also must have a valid Social Security Number) * Have earned income from employment or from self-employment * Have a filing status other than married, filing separately * Be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return * Not be a qualifying child of another person (if you are filing a joint return, your spouse also can not be a qualifying person) * Not have investment income over a certain amount * Not file Form 2555 or 2555-EZ (related to foreign earned income), and * Have a qualifying child OR: ** be age 25 but under 65 at the end of the year ** live in the United States for more than half the year, and ** not qualify as a dependent of another person If you qualify, the amount of your EITC will depend on whether you have children, the number of children you have, and the amount of your wages and income last year.
If EIC earned income credit is more than refund can student loans take your taxes Bankruptcy and other agencies cannot take your tax refund when eic is greater in amount than that of the refund?
Any federal or state agencies (including student loan and child support) have the right to take any amount due from your refund. It has nothing to do with EIC and they have th…e right to take the whole refund you are due if you are in default or have a judgment against you.
To qualify to claim the EIC, you must first meet all of the rules explained in Part A, Rules for Everyone . Then you must meet the rules in Part B, Rules If You Have a Qualify…ing Child , or Part C, Rules If You Do Not Have a Qualifying Child . There is one final rule you must meet in Part D, Figuring and Claiming the EIC . You qualify for the credit if you meet all the rules in each part that applies to you. If you have a qualifying child, the rules in Parts A, B, and D apply to you.If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Table 36-1, Earned Income Credit in a Nutshell. Use Table 36-1 as a guide to Parts A, B, C, and D. The table is a summary of all the rules in each part. Go to the IRS.gov web site and use the search box for Publication 17 go to Chapter 36 discusses the earned income credit
The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $48,279. A tax credit usually means more money in your pocket. It reduc…es the amount of tax you owe. The EIC may also give you a refund. Go to the IRS gov website and use the search box for Publication 596 (2009), Earned Income Credit (EIC)
If you had miscellaneous income from working for an individual and received a 1099misc form would this income qualify for the earned income credit??
It was enacted in 1975, but has seen many revisions over the years.
It can take your tax refund. It can take your tax refund. It can take your tax refund. It can take your tax refund.
The Earned Income Tax Credit or the EITC is a refundable federal income tax credit for low to moderate income working individuals and families. Basically, rather than withhold…ing the tax, the money is available with your paycheck.