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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.
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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.
Yes unless it is 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)
Kind of ..... The Law: No the Disability Tax Credit is not exempt. The Bankruptcy and Insolvency Act S67(1)(c) outlines certain property of the bankrupt to which the credi…tors have rights "... any refund owing to the bankrupt under the Income Tax Act..." The Court: In some cases the bankrupts have challenged this successfully in court. The Skinny: If you have time & money to take the issue to court, it is exempt.
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.
The EITC is a REFUNDABLE TAX CREDIT. Go to the IRS gov website and use the search box for EITC Home Page The Earned Income Tax Credit or the EITC is a refundable federal incom…e tax credit for low to moderate income working individuals and families.
The credit reduces your taxable income by up to $1,000 per qualifying child, so your income must be at least as much as the amount of the credit you claim. Otherwise, there is… no income for the credit to reduce. If you make less than the amount of the Child Tax Credit, you may still qualify for the Additional Child Tax Credit.
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.
This question comes up a lot. It seems the answer really is it depends: mainly on how much and very importantly, if your earnings/overpayment of withholding relates more to …Pre petition or post petition time. (In other words, if you filed BK in say December and the refund you get a few months later is for that Jan - Nov pre -petition period...it would be something for you creditors. Opposite if your filing was say in February...especially if you didn't work/earn much in the Jan/Feb period.) In any case, it is absolutely reportable. Tthe portion to be taken by the trustee should be the part relative to before the filing. Follow: Pre petiton assets and liabilities are in the BK. Taxes withheld from earnings are basically money put on deposit with the government, to pay the tax due/payable later on. Just like any other "savings" account. Had you had the 'correct" amount withheld (instead of too much, causing a refund), the additional you received would have been available for to pay those creditor/debts. Earnings (and hence tax overpayments) from after the filing are not part of the BK. And finally, please understand all BK is a Federal court action...your state has little to do with it....that may just be the name of the Federal Court District, of which there can be many, in your area. Yes, some of these districts have certain rules they hold by, to facilitate the cases they hear (like in AZ, which is a community property state - they would try to use those rules for definitions), but the actual process, etc. is entirely Federal Law and unchanging.
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
It was enacted in 1975, but has seen many revisions over the years.
yes they do take your child tax. i just payed mine and now they are wanting my car i payed off. I am trying to find out how to get it so they can not take my only car.They tol…d me that is the car is more then 1000.00 they can take it ans First, State isn't important. It depends on what Federal circuit court you file in (Bankruptcy is a federal law, an while circuits define somethings differently, it may not be too substantial a difference). It is true that most circuits have determined that the tax credit is part of the bankruptcy assets. However, some portions of the credit may not be, and like anything to do with the taxes of a bankrupt, which portion are from before and which portion are from after your filing is important (taxes from before filing are part of the BK, after, not).
Self-employment income does qualify as earned income for the credit. If you have children, the EIC is often more than the self-employent tax you owe. This year, it can a…lso qualify you for the Stimulus money.
According to the Wiki on EIC you can get 40% of your income back up to $12,570 . Between $12,570-$16,420 you would get the max amount back at $5,028. Above that amount it goes… down. This info was based on the 2009 tax year data. But to answer your question 40% of 0 dollars would be nothing. If you had an income of $1000 dollars you would EIC at $400 .
UNEARNED INCOME Sale of stocks, bonds, securities and etc. personal asset nonbusiness MUST FILE A 1040 tax form using the information from the 1099-B to report the transaction… on the schedule D of the 1040 federal income tax return and complete the income tax return correctly. A dependent on another taxpayer income tax return with unearned income interest, dividends, capital gains, gross rental income, taxable social security benefits, unemployment compensation, gambling winning and misc income, etc of more than 950 must file an income tax return and report all worldwide income on the 1040 tax return and pay any income tax that maybe due. A self employed taxpayer would be required to file an income tax return if business operation had a net profit of 400 and pay the social security and Medicare taxes that would be due plus any income tax that may be due after adding the net profit to all other gross income on the 1040 tax form and the amounts would be subject to income tax at the marginal tax rates. The must file an income tax return requirement for the year 2009 would be in the 2009 1040 instruction book starting on page 7 through 9 and the book is available at the enclosed web site. Go to the IRS.gov web site and use the search box for 1040 and choose instruction Filing Requirements Do You Have To File
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