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    susulumuslu's Avatar
    susulumuslu Posts: 2, Reputation: 1
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    #1

    Jan 11, 2012, 09:46 AM
    Bankruptcy and tax return
    I filed for Chapter 7 in September and got discharged before the end of the year. I'm about to file online for return. I have w2 and I made less than $17 000 last year. Will the Bankruptcy effect my return, and do I need any extra documents before I file my taxes?
    Thank you :)
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 11, 2012, 09:56 AM
    There are NO extra documents that need to be filed with your tax return. The bankruptcy is a separate issue entirely, UNLESS back taxes on the federal level were discharged!

    Contrary to popular belief, such back taxes CAN be discharged in a Chapter 7 bankruptcy, but the IRS does NOT like it, and are usually VERY SLOW in erasing the back tax owed balance on your account.

    So, if you had back taxes discharged, you need to make sure that the balance owed is reduced to ZERO before you file, because if you do not, and you are due a refund, and that back tax owed balance is NOT reset to ZERO, you WILL lose your refund.
    susulumuslu's Avatar
    susulumuslu Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jan 11, 2012, 10:07 AM
    To AtlantaTaxExpertI :Did not owe anything in taxes. I have w2, and always got return. All that I had was credit card dept, and it was discharged in full.Does that mean that I will get my full return?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 11, 2012, 10:33 AM
    Yes. The bankruptcy discharge gives you a clean slate, so you should get your 2011 refund in full.
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