I OWE What?

Today, I’m home getting my kid ready for her trip and organizing my paperwork.

I got together all the Trustee Payments stubs and put them together, this will make it really easy to find them in case they say they never got it, or whatever.
Check!

I got together all my Mortgage Payment receipts since the beginning of the BK so that I would have them as well.  You just never know!Check!

I called my Student Loan provider to ask them some questions about some things I have noticed on my account and that went well.
Check!

Then I decided, well, lets take a look at my taxes.  So I got out my manila folder full of statements and receipts and started plugging in the numbers.

And here was the bottom line:

image

Now you know that the Trustee gets my REFUNDS for the next FIVE YEARS!  I cannot apply that $1266.00 to my Federal tax due.  I am so screwed.

I have to come up with $2524.00 by April 15th.

I freaked out, cried, and almost had a heart attack due to heart palpitations!

I decided not to send in the Turbo Tax eFile. I need a second opinion.  So I called my old tax guy and will take the stack to him tomorrow and hopefully he can figure it out and maybe I did something really wrong.  He will cost me about 200.00.

The hits keep coming!  OMG, keep your fingers crossed.  But I have to get a professional to look at this mess!

Here is why I think I owe.

  • I re-fied this year and paid less interest on 1st. mortgage
  • I stopped paying the 2nd. mortgage. and I don’t have that interest deduction
  • My kid is now 13 and no longer get a tax daycare credit
  • Then there was this, the FSA fiasco, so maybe I am paying the piper on that as well…AND…
  • I claimed married for awhile because I didn’t want to get a refund.  Now, wasn’t that just brilliant?

Please keep your fingers crossed for me, the universe has got to cut me some slack!!!

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5 thoughts on “I OWE What?

  1. Oh, holy [expletive], that really sucks.

    And that’s scary.

    The IRS does allow you to set up a payment plan: http://www.irs.gov/Individuals/Payment-Plans,-Installment-Agreements

    Check with your BK attorney/trustee regarding how future refunds are handled – the IRS says that it will apply future refunds against outstanding amounts, but I’m not sure if they take precedence over BK trustees (IRS probably wins), and if they do, if that somehow affects what you owe the trustee.

    The easiest way to do this might be to get on a payment plan, pay at least $25 per month, and then set up your withholding this year so that you’ll get a refund in 2014, but then let the IRS take that refund and apply it against what you owe on your 2012 taxes.

    Might. (I’ve taken tax law and bankruptcy law, but only know enough about how each functions to be dangerous.)

  2. Ack, doing some reading: talk to the attorney – if you acquire tax debt that you cannot pay, your Ch. 13 may be converted into a Ch. 7, which would really, really be awful.

    I could be wrong, but I’m pretty sure – for what it’s worth – that the Trustee only gets a pro-rata portion of your California refund, i.e. only from August or so onwards. You might get to keep about a thousand of that.

  3. Bridget I am going to check out the site and info you sent! Thank you so much! Its almost 12:00 midnight here and I am a wreck! This whole idea is getting harder and harder day by day!

    Pauline, you got that right! I just hope I made a terrible mistake and that my numbers are way off! So worried!!!

  4. Pingback: Bright Future? Right! | Sixty Payments

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