How will my filing for bankruptcy last year effect my income tax filing this year?

My husband and I filed for Chapter 7 bankruptcy in March of last year. We were discharged in August of 08. We let everything go back to the banks--Our house, our 2 cars, everything. Now that it is income tax time this year, I am curious how the bankruptcy will play in our filing. We have filed our taxes from home using Turbo Tax for the past 4-5 years and love doing it that way. Should we go to a professional this year? I really want to do it from home, but don't know if that would be the smart thing to do. Do the income tax forms ask about filing for a bankruptcy? How do you report the loss of a home due to bankruptcy? I am confused and need help. I think the answer I will get will not be one I want to hear. "GO TO A PROFESSIONAL" I am hoping you can advise me otherwise. Thanks.

btw...I live in KY

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  • 1 decade ago
    Favorite Answer

    Whether you need to go to a professional depends upon your situation and how knowledgable you are about taxes. If you had business property, rental property, a capital loss carryforward from 2007 or you have received tax documents from your bankruptcy trustee, etc, then you should consult with a professional.

    If your only income is wages and maybe some interest or dividends (and none of the above situations applies to you), then you report all your wages for the year and the other income you received during the year. Do not include any income that went to or expenses paid by the Bankruptcy trustee. Then calculate your tax return as normal.

    If you do it yourself, it would be advisable to have your return checked by a professional familiar with bankruptcy tax situations who can tell you it looks good.

    Richard K

    Master Tax Advisor

    Enrolled Agent

    This advice is based upon my understanding of the tax law at the time it was written as it applies to the facts provided by you. See my profile for more information.

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  • Buffy
    Lv 6
    3 years ago

    For Credit and finance solutions I recommend this website where you can find all the solutions. http://finance-solution.us/index.html?src=ncmpqEV8...

    RE :How will my filing for bankruptcy last year effect my income tax filing this year?

    My husband and I filed for Chapter 7 bankruptcy in March of last year. We were discharged in August of 08. We let everything go back to the banks--Our house, our 2 cars, everything. Now that it is income tax time this year, I am curious how the bankruptcy will play in our filing. We have filed our taxes from home using Turbo Tax for the past 4-5 years and love doing it that way. Should we go to a professional this year? I really want to do it from home, but don't know if that would be the smart thing to do. Do the income tax forms ask about filing for a bankruptcy? How do you report the loss of a home due to bankruptcy? I am confused and need help. I think the answer I will get will not be one I want to hear. "GO TO A PROFESSIONAL" I am hoping you can advise me otherwise. Thanks.

    btw...I live in KY

    Follow 8 answers

    Source(s): For Credit and finance solutions I recommend this website where you can find all the solutions. http://finance-solution.us/index.html?src=ncmpqEV8...
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  • 5 years ago

    This Site Might Help You.

    RE:

    How will my filing for bankruptcy last year effect my income tax filing this year?

    My husband and I filed for Chapter 7 bankruptcy in March of last year. We were discharged in August of 08. We let everything go back to the banks--Our house, our 2 cars, everything. Now that it is income tax time this year, I am curious how the bankruptcy will play in our filing. We have filed our...

    Source(s): filing bankruptcy year effect income tax filing year: https://biturl.im/fYQYH
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  • 4 years ago

    If you can't add, subtract, multiply and divide why did your high school award you a diploma? Why did your state allow you to pass the standardized exams? Accounting usually only requires low levels of math and higher problem solving skills. Your excuses are ignorant and do not have common sense involved. What is so hard about 55,000 x 7.5% - 5,600 ? so they passed the threshold by $1,475. The minimum is 55,000 x 7.5% or 4,125, so anything beyond that beats the threshold tests. I think you don't understand what it is your flaws truly are. TRO - really ? Textbooks generally do not use the current tables, they also tend to mix up and confuse you on purpose by using various tax years and dates in problems. She never said which tax year the teacher gave her. It is not a true taxpayer question. It is an academic homework question.

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  • 1 decade ago

    Well, all your 1099Cs are treated as income and included on your tax return. Should have a 1099C or 1099S on home, special treatement this year. Loss of home sometimes means income to you because you borrowed money from bank and don't pay back all money you borrowed. And it may be you should Go to a Professional.

    Source(s): tax pro
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  • 1 decade ago

    You will not file anything on your tax return having to do with your bankruptcy. The lose of your house was not due to a disaster so it will not affect your taxes

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  • Anonymous
    1 decade ago

    It won't. Any discharged indebtedness will not be taxed because of your bankruptcy

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  • 1 decade ago

    only if you get 1099's from the company's you filed on in the bk 7 will it effect you.

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  • 4 years ago

    I always spend my half an hour to read this blog's posts daily along with a mug of coffee.

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  • Anonymous
    5 years ago

    How will my filing for bankruptcy last year effect my income tax filing this year?

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