Tag Archive: Income Tax

Will I lose My Tax Refund If I File for Bankruptcy?

tax refunds

After filing for bankruptcy most people still expect to receive tax refunds however this isn’t always as straightforward as it appears. While some people are able to keep refunds, many others will find they lose them. It is a strange and very tough process to understand because there are many forms of bankruptcy which is important to remember. The following may help clear up concerns about losing a refund after filing for bankruptcy.checkout latest article posted at http://www.baublesandjewels.com/large-tax-refunds-not-always-good-thing/

You May Be Able To Keep Your Refund with Chapter 7 Bankruptcy

If you were to file for chapter 7 bankruptcy you may find there are actually several protections put into place that could help protect your refunds from being lost. Now, having said that, it really depends on your circumstances but usually the refunds can be exempt from the bankruptcy. Of course while most people will find the exemptions to be wonderful in allowing you your refund you can’t always count on these. You really need to speak to a professional before your file for bankruptcy about what will happen to your refunds. You may have already filed your tax return but if you were to also file for bankruptcy the refund may be delayed at this time until the matter is cleared up.

You Will Lose Refunds with Chapter 13 Bankruptcy

There are no real protections or exemptions available when filing for chapter 13 bankruptcy as most trustees overseeing the bankruptcy will look at paying any creditors with the refund amount. However, that doesn’t mean to say the trustee can’t offer some discretion over the refund. Those filing for bankruptcy may be able to plea for the refund not to be seized but again this does vary. Unfortunately most people will find they lose their tax refunds and this can of course add to the worries but it will be important to talk to an advisor over this exactly. You never know the advisor may be able to offer some real advice over whether or not your circumstances warrant the refund.

There May Be Exceptions to Refund Losses

tax refunds

It is so hard to say whether or not you will lose part or all of your tax return refund. There will be occasions when certain protections can be put into place so that no losses are occurred however this may not always be the case. Every individual has different circumstances and while an exemption can be put into place so that the trustee overseeing the bankruptcy allows you to keep the refund, some trustees will pay creditors with the refund. Again, refunds and bankruptcy differ and it really comes down to everyone’s personal circumstances. Some exemptions may not kick in if you file just after the refund is given but may be given when file before submitting the yearly return.

Get Advice from a Professional before You Panic

It is so easy to say those with Chapter 13 bankruptcy will lose their refunds but the truth is every bankruptcy varies. Yes in most cases you will end up losing a refund however you cannot be sure until your case has been looked at carefully by a professional who knows about refunds and bankruptcies. You may be entitled to tax refunds and you won’t know for sure until your case is looked over.

Why Large Tax Refunds Are Not Always a Good Thing

Large Tax Refunds

Tax time is a nightmare but most people look forward in receiving a lovely big fat tax refund. Anything over a thousand dollars is a bonus and let’s be honest there are a hundred different things you can do with it. However, while getting a large refund may seem great it isn’t always and in fact you really don’t want a big refund but why? Why is it large tax refunds are bad for us?visit this link for more additional tips.

You Have Been Overpaying On Taxes All Year

First and foremost when someone receives a large refund after their tax returns have been processed, they have essentially been overpaying. Overpaying a few hundred dollars isn’t too bad but when you reach the thousand dollar mark then it’s getting ridiculous and it shouldn’t happen. Unfortunately hundreds of thousands of people overpay and essentially they’re taking money out of their own pockets. This is money they didn’t need to pay and its money they could have used on other important expenses during the year.

You’re Technically ‘Loaning’ Money to the Government with Zero Interest

Most people don’t really think about what it means to receive a large refund. You have handed over money each month to the government and they’re basically holding onto it until the end of the financial year. Now, this isn’t terrible but just think about all the interest you’ve lost? If that money was still in your bank account you would have accumulated interest but not when the government holds it. You may get your money back in the form of a tax refund but that’s really a loan and one you don’t get interest back on. You’re losing out big-time and it’s wrong.

Think About Inflation

Every year in Australia, (as in most countries) there is the process of inflation. This is really all about how costs go up slightly and how money may not be worth the same as it was twelve months ago. However every time you allow the government to keep your money because of overpaid taxes then you are losing money. Inflation over the course of a year could end up costing you twenty of thirty dollars and while that isn’t a huge amount it is money you didn’t have to lose. Filing a tax return every year is of course important but checking how much you pay each month will be equally important so you don’t overpay.see more reviews at http://economictimes.indiatimes.com/wealth/personal-finance-news/tax-refund-claims-worth-rs-1-23-lakh-crore-pending-with-i-t-department/articleshow/53557994.cms

It Is Your Money

Large Tax Refunds

Large tax refunds are nice but they could have been used to help ease monthly bills. Most people stress when their pay checks don’t stretch far enough but with the amount of money you receive from your refunds, it could have eased the tension. It is your money and it could’ve made such a big difference to your household.

Keep Your Refunds Low

You may not believe so but it is actually good to keep your tax refund low or at least as low as humanly possible. A lot of people don’t realize these refunds aren’t a windfall as it’s your own money and not free money the government is handing out. Ideally you don’t want a refund and you don’t want to owe anything either. That is why it’s important to check your taxes and find out how much you’re paying exactly and take steps to stop overpaying and of course, ensure everything is declared on your yearly tax return too.

Speedy Tax Refund – How to Speed Up Your Income Tax Refund

Speedy Tax Refund

Very few people enjoy filing tax returns but they are necessary in today’s society and at the end of it, you may receive a refund. However, the waiting time for a refund to reach you can often vary and for some they find the process just too lengthy. There are in fact many simple ways to speed up your refund and it’s very much possible to receive your refunds in a matter of days once processed.

File Online For a Quicker Tax Refund

One of the easiest ways to complete a tax return today has to be electronically. E-filing is simple and fast and usually it can help speed up the refund process also. Yes, you may prefer paper filing but online does make it a lot easier and in most cases the returns are processed much faster too. If you would like to know more about filing online please look at taxreturn247.com.au.

Opt For Direct Deposit

Sending out a refund check can in fact be considerably longer than you would think. The government needs to send the refund information to the department that deals with refunds and then the people there have to write out each check and send it via post. It can delay things by up to a few weeks and if you really need the tax refund quickly you may be best to choose direct deposit. This method will send the money electronically into your bank account which usually only takes a few hours.

Keep It Simple When You File

It can be a complicated process to fill out and file a return but it’s important for you to ensure you are careful in your approach. For instance paper forms have boxes set out in which you are supposed to fill in the information but some write well beyond the squares which can actually take longer to process. You wouldn’t think so but it’s true which is why there is an additional information page at the end of the forms. You don’t want to add any unnecessary information and remember if you file online, don’t file in paper form too as only one is necessary. It’ll take longer to process any tax refund so keep the returns simple and the process will be quicker.

Include Only Legitimate Deductions

Speedy Tax Refund

You may be tempted to add dozens of seemingly innocent deductions hoping to catch a break but in reality the Australian government is clamping down on deductions. Thousands attempt to claim for the craziest of things and it is only slowing down the processing time. Going through each expense takes a lot of time which is why you need to ensure every expense or deduction you claim for is truly legitimate and accepted. While you believe one deduction is a true expense the government may not class that as one so you have to keep updated with what is classed as a true deduction and what is total rubbish. Speedy tax returns are possible as long as the deductions you list are true.Get more information straight from the source.

There Is No Need to Wait

To be honest waiting weeks or possibly months for a refund isn’t really that necessary. For some this money is greatly needed and waiting for it to arrive can be a nervy time. However, if you file correctly, avoid mistakes and opt for direct deposit then receiving your refund shouldn’t be a lengthy process. A speedy tax refund is very much possible as long as you help the process along.