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kduke868
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What all do I need to file taxes after filing for bankruptcy in 2018?

 
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MichaelMc
New Member

What all do I need to file taxes after filing for bankruptcy in 2018?

Bankruptcy has surprisingly little effect on filing your income taxes. You will file using your income from Forms W-2 and 1099, as usual. You are still entitled to any deductions and credits that apply to your own particular circumstances. Neither attorney's fees, filing fees, nor payments to the Court are tax deductible, aside from payments of mortgage interest or state and local taxes that would have been deductible if paid outside of the bankruptcy.

You did not mention whether you filed under Chapter 7 or Chapter 13.

If your filed under Chapter 7, your bankruptcy may have already been adjudicated. If your case was adjudicated in 2018, and debts were cancelled, some of the creditors may issue Form 1099-C to you. In ordinary circumstances, a 1099-C indicates the amount of cancelled debt that will be taxed as income. Do not be concerned if you receive these forms. Debt cancelled by the adjudication of a bankruptcy is not taxable income.

If you are in a Chapter 13, you will be under supervision of the Court and the U.S. Trustee for three to five years, while you pay off your debts according to your Plan. At the end, some portion of your debts may be discharged (cancelled). As above, the amount of debt cancelled is not taxable income.

If you are in a Chapter 13 proceeding, be sure to file your tax returns on time, and send a complete copy of your tax returns to your supervising U.S. Trustee. In almost all cases, the Trustee will require that any tax refunds be turned over for use in paying your creditors. Speak with your attorney or the Trustee's staff to verify if this provision is in your Plan.

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