Will The Trustee Take My Tax Refund?

Tax refunds are heavily disputed in bankruptcy cases and it isn’t hard to understand why that is. However, for most people they don’t know whether or not a trustee in their case will look to seize the refund. It can be a worrying time so what will happen? Read on and find out more.

Why Are Tax Refunds In Dispute?

Most refunds are considered payable income even though you haven’t as yet received the money but it will become a part of your estate during a bankruptcy. If you already have received the money and has been spent before bankruptcy then technically it is no longer a part of the bankruptcy estate. However, if the money has yet to be received into your bank account or is still within your account then it may be classed as part of your estate and it will need to be disputed. If you would like to find out more, please check out taxreturn247.com.au.

There Are Several Deciding Factors over Whether a Trustee Will Take A Refund

Tax refunds are more than likely going to be taken by the trustee in order to cover certain debts outstanding but there may be one or two omitting factors. For instance if the refund amount is considerably small then it may not be seized.view more information at http://economictimes.indiatimes.com/wealth/tax/missed-the-tax-return-filing-deadline-heres-what-to-do/articleshow/53597715.cms

However whether the refund amount can be exempted from being taken it will come down to a variety of things such as the amount of the refund, what the local authorities have to say and the trustee’s thoughts. Most will find their refunds are gone but there may be some allowances in some cases.

Trustees Will Make a Decision

Usually it is the bankruptcy trustee that makes the final decision over your refund. If the trustee believes the size of the refund is large enough to pay back all of your creditors then he or she will make the decision to take the money and use it to pay back the necessary people. However, let’s say you owed over ten thousand dollars and your refund was two hundred dollars, the trustee may decide not to take the refund as it isn’t worth their efforts. Again, this will vary depending on the trustee and what they believe is right for your case. To find out more, go to taxreturn247.com.au.

There May Be Exceptions

 

Tax RefundWhile the trustee does essentially have the final say there are potential exceptions as to whether or not they will take your refund. As mentioned above if the amount of money isn’t worth their time or efforts then they will probably not take the refund. However, this isn’t the only exception available. Your personal circumstances could play a vital part in determining whether the trustee will take the tax refunds. Of course if you happen to spend the money before the bankruptcy that is another story or if you spend the refund on a car or mortgage payment then usually there isn’t much a trustee can do.

Be Clear

At the end of the day it is your personal circumstances in which will determine whether or not your refunds are taken from you. Yes you may be lucky to find the refund isn’t taken but you can’t always be sure. It will be important to talk to the trustee and inquire about this so that it isn’t dragged out. If the money isn’t taken then it can be used for a necessary mortgage or rent payment. High tax refunds are more than likely to be taken but smaller ones probably won’t be.

The 4 Best Ways to Spend Your Tax Refund

Tax refunds are fantastic because the amount you receive can vary considerably and range from a few hundred to a few thousand dollars. However most people rush to spend the money as they are so excited about this unexpected windfall but later regret it. There are many good ways to spend your refunds and you should consider the best ways first before splashing the cash around.

Upgrade Your Home or Make Necessary Repairs

If your home is in need of serious repairs then whatever tax refund you receive should go towards that. It could be minor repairs or major ones but these repairs could prove very useful in keeping your home in good condition.

The money could be used for general maintenance of the home too or if there are no repairs required at the moment, the money could be put away for such time. However, the refund could be put towards improving the home such as upgrading the doors or windows or installing new fixtures and fittings. Your refunds could be sizable too so consider spending it wisely on your home.

Set Up or Add To an Emergency Fund

Emergency funds are just so crucial for every household today and whether you have very little or a lot of money put away for a rainy day, it could all prove useful. However you can’t have too much in your emergency fund because you never know when you’re going to need extra cash or for what purpose. Knowing money is there for tough times can lift a weight from your shoulders and while it may sound like a boring way to use the tax refunds it’s actually pretty smart.see post from http://www.bankrate.com/finance/taxes/ways-not-to-spend-your-tax-refund-1.aspx

Pay Off Debts

Having debt looming is always worrying because you fear about a missed payment or the creditors knocking at the door. It’s stressful with debt and even if it’s only a few hundred or thousand dollars, you still worry deeply about it day-after-day.

However your tax refund could be used to put towards old debts. You could pay off many debts depending on the amount you owe and the amount you receive but it could help pay the debts off faster and improve your credit score at the same time. Again, paying off debt isn’t exactly an exciting way to spend your refund but in all honesty, it’s a smart way to spend the money.

Invest

Spend Your Tax RefundInvestments are something which many get the wrong idea about. You don’t have to invest all the money from tax refunds and you don’t have to go into the stock market either. You could invest money in a new family vehicle or use it as a down payment for a new home. You could even invest in yourself and the choices are endless. Of course you could invest in the stock market if you wanted to but it isn’t the only investment option available to you. There are many great ways to invest such as putting the money towards buying a new home.

Be Smart With Your Tax Refunds

None of the above four suggestions may sound appealing but they are really the best ways to spend your refunds. They are the smart options simply because you’re putting the money to good use rather than wasting it by spending it on luxury items you rarely need, want or use. Yes treating yourself is good and you should but in moderation. Spend your tax refund wisely.

How to Get a Tax Refund Online For Your Overpaid Taxes?

Obtaining a tax refund after overpaying taxes shouldn’t be too difficult, not if you go through the right procedure. Thousands of people in fact overpay taxes every year and while many receive a refund after they’ve filed their returns, some are not. Unfortunately over payments are sometimes overlooked because of wrong tax codes or misinformation but it is possible to claim back these over payments. It can be a simple process to claim and receive a tax refund within a few steps.

Use a Tax Repayment Company

For those who have overpaid taxes and want to claim a refund there are only a few options available. Contacting the Australian government directly is a good idea but sometimes it is not a simple process as they have already seen to your current tax returns and have found you aren’t entitled to anything.

However going directly to the government isn’t always necessary. There are now many good tax repayment companies online that can help you deal with refunds easily. In most cases any refunds owed to you will be sorted out but as we all know mistakes can be overlooked so it’s best to use an unbiased source to help your claim.

Ensure All Necessary Documents and Data Are With You

Before you start the process of claiming overpaid taxes you are going to need certain pieces of information to assist you. Firstly, you’ll need pay checks and every document you have containing information about your taxes and what you have already paid. The documents will also help you make sure everything is fine as you only ever get one chance to claim overpaid taxes.

The government will not allow repeat claims for overpaid taxes which is something you have to be aware of because if you make a mistake with the information you provide you may not be eligible for a refund. You get one shot and one shot only so be wary before claiming a tax refund.visit website from http://www.eonline.com/news/786476/harry-potter-s-rupert-grint-loses-1-3-million-tax-refund-case

Fill Out the Necessary Tax Repayment Forms

Tax Refund OnlineThe process is considerably easy. You will need to provide certain information to prove you have overpaid taxes. Once the information has been added then the forms can be sent online which should take seconds to arrive at the Australian tax office. The processing time for these claims may vary but hopefully you will get an answer back within a relatively short period of time. You may not know whether this claim has been successful until a tax refund arrives in your bank account.

File Online and Take Action with Overpaid Taxes
In most cases those who have overpaid taxes for the past year will eventually receive a refund but if the over payment has been overlooked then filing for a repayment may be necessary. However, this process is exceptionally easy and it may help you to receive any over payments also. You may have filed tax returns but that may not prevent you from overpaying and being eligible for a return, especially if you haven’t noticed an over payment for a year or two.