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Does filing Ch 13 then converting to Ch 7 cause any repercussions on your income tax filing this year?
I don't know what other tax ramifications might result from the conversion, but if one converts their case from 13 to 7 prior to receiving their tax refund that year, the Chapter 7 trustee normally takes the tax refund check and distributes it to creditors if the amount of the refund is over $1,000.00 or so.
Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
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It really depends on your individual situation. If you dont file taxes and then you owe then you are subject to penalties and fines for filing late as well as interest on the …debt that you owe. If you are entitled to a tax return and do not file nothing comes of it. You can go back for up to three year and file, but after three years that statute of limitations runs out.
First it all depends on how much you may have owed. And, realistically, how well the current situation can be resolved. Now the funny thing is, to many of us in the… tax profession, in many, many non-filer cases...it actually turns out that the taxpayer had money and benefits due them for several years had they filed! Frequently much more than they may have had an obligation to pay in other years. They just didn't understand. Unfortunately, the way the law works is the time limit for claiming the refund for many of the years may have expired...but as the time limit for being assessed doesn't start to run until a return is filed, any tax owed is still owed. (Obviously old and non existant records can make things even more difficult to support). Squaring up with the IRS in thesecircumstances is not for the inexperienced or faintof heart. There are options and processes that can limit the amount you eventually owe...and in most cases the IRS is most interested in getting you back in taxpayer status. Make sure you don't forget your State will be interested too. I suggest employing a well experienced pro in this...CPA, Tax Lawyers are good choices, but my favorite is someone called/titled an "enrolled agent", or EA. These are frequently ex-IRS officers and have a very good understanding of how and what flies with the IRS the best.
Answer It depends. This varies widely from district to district and even division to division inside of a district. For example, in the Southern District of In…diana, in the Indianapolis and Evansville Divisions they usually do not make you pay your refund check to the Chapter 13 trustee unless the refund check is huge; in the Terre Haute Division, they ask that you pay it if the non-earned income credit portion exceeds $750.00, and in the New Albany Division they always make you pay half regardless of how much it is. Certainly the Chapter 13 trustee can usually convince the court to make you give them tax refunds during the life of the Chapter 13 Plan if they wish, but many trustees do not. The only way to know is to call the Chapter 13 trustee who serves your district and division and ask them their policy regarding tax refund checks. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!
A sixteen year old can file income tax and, if the 16 year old had sufficient income, the 16 year old must file tax. There are no upper or lower age limits on income tax oblig…ations. Even if the 16 year old didn't owe any tax, if taxes were withheld from the 16 year old's wages, the 16 year old should file in order to receive a refund.
> Self-employed, any age: $400 Children and Teens classified as a dependent: $5,700 Single, under 65: $9,350 Single, over 65: $10,750 Married, filing jointly, both sp…ouses under 65: $18,700 Married, filing jointly, one spouse over 65: $19,850 Married, filing jointly, both spouses over 65: $20,900 Married, filing separately, any age: $3,650 Source: TurboTax Support website (related link below) Even if you do not have to file, you should file to get money back if Federal Income Tax was withheld from your pay,which if you were an employee most certainly happened or you qualify for any of the following: Earned Income Tax Credit. The Earned Income Tax Credit is a federal income tax credit for eligible low-income workers. The credit reduces the amount of tax an individual owes, and may be returned in the form of a refund.Additional Child Tax Credit. This credit may be available to you if you have three or more qualifying children or if you have one or two qualifying children and earned income that exceeds $11,300. The Additional Child Tax Credit may give you a refund even if you do not owe any tax.Health Coverage Tax Credit. Limited to certain individuals who are receiving certain Trade Adjustment Assistance, Alternative Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation. Additional information on filing taxes: Simple Common Sense: The only time you actually do WANT to file is when the IRS says you don't have to! They don't do that because it's good for you. They do it because it is more likely to be good for them. Certainly if you don't have to file, NOTHING BAD, in fact only good things, can happen by doing so. Federal Taxes are the same throughout the country. State tax laws are specific to each area. Whether you have to file a tax return (or pay tax) depends, in part, on your filing status, deductions, amount & type ofincome. There are no such things as "start and stop" ages, not having to pay because of retirement or on social security or working from home or a student. It is all addressed as a matter of "how much TAXABLE income." (Note: working isn't relevant either, as many people who don't work or are retired, or disabled, or old, or young, or in school, have income from many sources: savings, investments, etc. TAXABLE income is different than what you may otherwise think of as income. In most circumstances, you have to do many of the calculations needed to file a return, just to determine what taxable income may be). Likewise, there are no special or fixed rates for retired, student, doctor, sanitation worker, President, convict...whatever. The amount of taxable income after applicable deductions and adjustments determines the rate applied to your particular situation. The rate, as well as the amount, you pay changes as the amount of income does. You must file a tax return if you had net earnings from self-employment of $400 or more. This is your total self-employment income less the expenses paid in operating your trade or business, multiplied by 92.35%. If you weren't self-employed (paid on a 1099 or ran your own business) then you would always want to file a return to claim the amount withheld and shown on your W-2, which with lower incomes will always be refunded to you. If you are an individual who may be claimed as a dependent on another person's return, you are subject to specific filing requirements. Refer to the instructions in your tax package or refer to Publication 929, Tax Rules for Children and Dependents, or Publication 501, Exemptions, Standard Deduction, and Filing Information, for the filing requirements for dependents. All available at www.IRS.gov You must file a tax return if you received any amount of advance earned income credit payments from your employer during the year, or if you owe any taxes, such as: social security tax and Medicare tax on tips or group life insurance,alternative minimum tax,tax on qualified retirement plans including an Individual Retirement Account, or other tax-favored account,tax from recapture of an education credit, investment credit, low income housing credit, federal mortgage subsidy, qualified electric vehicle credit, or the native American employment credit. Generally, you must file a tax return if you are a nonresident alien with income from sources in the United States. For more information on nonresident aliens, select Topic 851 at the IRS website. Even if you are not required to file a tax return, file a return BECAUSE MANY, LOW INCOME PEOPLE HAVE MANY BENEFITS COMING THAT ARE KEYED TO FILING A RETURN. (Like stimulus checks). Also, the Statute of Limitations for when the IRS can no longer ask you questions about your affairs for a year only STARTS to run when a return is filed. Not filing, and they can bug you, (and assess a tax) for forever!
No, if you made nothing in the year. If you are self-employed and have filed in previous years, then you also need to file for the prior taxable year. There is big differ…ence between money earned and what is considered a profit in self-employment.
If you have NO income, then no. ANSWER: If you are subject to the Personal Income Tax Law and liable for a tax then yes you do have to file a valid return, ev…en if no income was earned. Income is what is used to measure how much is owed and the tax collections agencies can not know how much you owe or even that you don't owe until you have filed the necessary forms informing them of your no income status. Don't take anybodies word on this. Not mine, not TaxmanAE's, read the law yourself. You are presumed to know the law and since it is your tax liability in question it is you that is expected to know the law and you won't be able to argue that an incompetent tax expert gave you bad advise in a tax court later and God forbid in a criminal court even later. Learn the law!
Yes it does. Any form of income counts towards calculating your means test. Social Security incomes do not count as income. I just visited my lawyer today. The only question …we had was if my VA Disability would count, because there is nothing in the books that show one way or the other about VA disability. It specifically states that SSDI does not apply or count towards your income with filing Chapter 7/13. Although they are going to check, they are positive that disability income of any sort does not apply towards your income. IF you are:a veteran, ANDyou are disabled (as defined in 38 U.S.C. §3741(1)),The term "disabled veteran" means (A) a veteran who is entitled to compensation under laws administered by the Secretary for a disability rated at 30 percent or more, or (B) a veteran whose discharge or release from active duty was for a disability incurred or aggravated in line of duty. ANDyour indebtedness occurred primarily during a period in which you were: on active duty (as defined in 10 U.S.C. §101(d)(1)), orThe term "active duty" means full-time duty in the active military service of the United States. Such term includes full-time training duty, annual training duty, and attendance, while in the active military service, at a school designated as a service school by law or by the Secretary of the military department concerned. Such term does not include full-time National Guard duty.performing a homeland defense activity (as defined in 32 U.S.C. §901(1)), Title 32. National Guard / Chapter 9. Homeland Defense Activities / § 901. Definitions: In this chapter: (1) The term "homeland defense activity" means an activity undertaken for the military protection of the territory or domestic population of the United States, or of infrastructure or other assets of the United States determined by the Secretary of Defense as being critical to national security, from a threat or aggression against the United States. THEN you are exempt from the means test.
Why pay an attorney to file Ch 7 when you are unable to pay credit card debt and only have social security income and no assets?
%REPLIES% Answer If a person is judgment proof filing bankruptcy would not be needed. The reason this is done in the majority of the cases is (1) To protect the… consumer in case sometime in the future they acquire nonexempt assets, such as an inheiritance. (2)To stop creditor/collector phone calls, mail, etc. (3) To avoid lawsuits, even if there are no assets some creditors will still file a suit, in the hopes of collecting at some future time. Answer It is not necessary to use an attorney to file your Chapter 7. You can use a paralegal, or there are programs you can utilize through your state or city that will allow free or reduced costs in regards to filing. I think there are also payment plans available with the court as well for filing fees.
%REPLIES% Answer You could be commiting fraud, not only in Georgia, but in any of the other states or possesions. Answer It is not illegal. You wil…l, if the car is not covered by the vehicle exemption have to forfeit the car to the BK trustee. If the car was bought out of necessity, such as it was needed for you to get to your job, it will probably not affect your BK filing. On the other hand, if you just "wanted to buy a car", you could have a problem getting the bankrupcy discharged.
How long should a person wait after a chapter 13 bankruptcy is dismissed to file income taxes for that year to guarantee to receive the refund?
You have to file your income taxes yearly regardless of whether you have filed for bankruptcy or not. Yes, IRS may garnish your refunds to pay toward your debts. If your bank…ruptcy is over however, you don't have to worry about that.
Answer If the Chapter 13 has been discharged for 2 years, then one normally doesn't have to do anything since 11 U.S.C. § 541 (a)(5) states that "(a) The commenceme…nt of a case under section 301, 302, or 303 of this title creates an estate. Such estate is comprised of all the following property, wherever located and by whomever held: (5) Any interest in property that would have been property of the estate if such interest had been an interest of the debtor on the date of the filing of the petition, and that the debtor acquires or becomes entitled to acquire within 180 days after such date— (A) by bequest, devise, or inheritance; (B) as a result of a property settlement agreement with the debtor’s spouse, or of an interlocutory or final divorce decree; or (C) as a beneficiary of a life insurance policy or of a death benefit plan." This Code section implies that only inheritance received within 180 days after Discharge has to be brought to the attention of the trustee. However, if the Chapter 13 is still active, then one should bring the inheritance to the attention of their attorney since the Chapter 13 trustee normally pursues all or a portion of the inheritance to distribute to creditors through the Plan. Failure to report the asset could mean big trouble for the debtor. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
If your mortgage company is trying to have the automatic stay lifted for non-payment can you dismiss the ch 13 and go into ch 7 but still keep the house by then filing ch 13 again?
Answer A chapter 13 can be converted to a chapter 7. The house would be included in the 7. Even if the homestead exemption protected it, it is apparent the… lender does not want to reaffirm the loan. So trying to file a 13 again would be pointless. Bankruptcy will only protect a house if the payments are kept up as agreed. Lenders will often try to work out a plan for the borrower to catch up on missed payments while keeping scheduled payments current. There is however no law that requires them to so, a house is a secured debt, the lender can foreclose when the contract is defaulted on, if they so choose.
Just filed? Just like always, except one would expect that it would be something the administrator will want, along with confirming the status of the account with the IR…S. The business last filing should be after it dissolves.
Yes. If you are a qualifying child dependent or qualifying relative dependent of another taxpayer the you will have to check the box on the 1040 income tax return that you are… using indicating that you are being claimed as a dependent and would have to use the worksheet that is provided in the instruction book for the 1040 tax form that you are using. The QC or or would not be able to claim the exemption amount on your own income tax return
Normally, the bankruptcy attorney you hire can file amended forms with the court within a certain time frame of the original bankruptcy filing. There are costs associated with… this that I believe is tied to not only the number of debts, but the amount of those debts. Your bankruptcy attorney can answer that question and usually does so at no charge.
Ones age does not determine if a person files taxes or not, what it matters is how much money the person made that year. What was the income of the person that year, is what d…etermines the income tax filling status.