Maryland Heights, MO asked in Bankruptcy and Tax Law for Maryland

Q: Should you file jointly or separately for taxes when one of the spouses has Chapter 13 bankruptcy?

I have done my taxes both jointly and separately-

Jointly the total refund = $3063, Separately: Spouse #1: $1100 refund and Spouse #2/Debtor: $950 refund

I see in the Chapter 13 Plan- that if I "file jointly Debtor may retain $1500"- is that of the total $3063 or do they take in account some of the refund is my the other spouse that did not file for bankruptcy?

Because if Chapter 13 ends up taking the other ~$1500 if filing jointly, it is smarter to file separately since Spouse #1 tax return separately is greater than the Debtor. Please Advise! Thank you!

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1 Lawyer Answer
Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: File separately.

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