topic I got a refund from a creditor who took money from my account after my bankruptcy. Is this amount taxable? It is reimbursement for $ withdrawn from my bank improperly. in After you file

I got a refund from a creditor who took money from my account after my bankruptcy. Is this amount taxable? It is reimbursement for $ withdrawn from my bank improperly.

teacherdi4 — Thu, 06 Jun 2019 05:55:06 GMT

It is not taxable income that has to be reported because...

MaryK1 — Thu, 06 Jun 2019 05:55:07 GMT

It is not taxable income that has to be reported because the refund was only replacing money they had no right to take in the first place (because of the bankruptcy) Compare to-- if you took a deduction for property tax and then got a refund it would be income because you deducted it so it has to be added back (if that makes sense- in your situation, the company took and replaced whereas my example you took a tax advantage so you have to pay it back to the IRS).

What do I do if the company sent me a 1099-MISC?

teacherdi4 — Thu, 06 Jun 2019 05:55:08 GMT

What do I do if the company sent me a 1099-MISC?

As a tax professional, I would say keep a copy of the 109...

MaryK1 — Thu, 06 Jun 2019 05:55:10 GMT

As a tax professional, I would say keep a copy of the 1099-MISC and any paperwork or bank records that show the transaction in case the IRS requests it. There is no way to provide an explanation now (which would be so helpful) and the IRS may not inquire but it is not taxable income so it really is a matter of reporting it.

Thank you.

teacherdi4 — Thu, 06 Jun 2019 05:55:12 GMT

Thank you.