I filed for bankruptcy last year, and before I do my income taxes is there anything I need?
I filed for Chapter 7 Bankruptcy. It was finalized February 2009 and my debt was discharged (forgiven). Before I file my income taxes for the 2009 year, is there anything special I need to do in order to file my taxes. I do them myself online.
We were discharged in March 2009. Our attorney told us to file our taxes this year as we normally do (which is online thru TurboTax). Our attorney said that we would have been contacted already by the US Trustee if there was anything extra required for this year’s tax season.
February 15th, 2010 at 11:48 pmDischarged debt is taxable except in bankruptcy.
The way the formula works, cancelled debts can only be taxed ABOVE asset value. I’ve never been in bankruptcy, but I think the court would have given you an explanation of total assets and total debts (and total debts forgiven). If the total forgiven was higher than your asset value, some of it might be taxable, but it’s doubtful.
February 15th, 2010 at 11:48 pmThe debt which was outstanding before bankruptcy is no longer taxable.
February 15th, 2010 at 11:48 pm