Getting a large tax refund is not the best way to manage your money. If your withholdings are appropriately allocated, your refund should be as close to 0 as possible. That provides you with full access to your hard-earned money over the course of the year to use as needed. When you receive a large refund, essentially what you’ve done is provided the government with an interest free loan over the course of a year.
Tax refunds have a role in filing bankruptcy. If you are filing a Chapter 7 Bankruptcy, you will need an experienced attorney to help you protect your tax refund. The calculation in Virginia is complex and if done incorrectly, the money can be taken to pay creditors. If you are filing a Chapter 13 Bankruptcy, you are normally allowed to keep your refund but you must treat it as income prorated throughout the year.
Protect your refund from creditors by contacting Attorney Edrie Pfeiffer today at (757) 320-2010. Don’t forget to change your withholdings so that you have access to your money right when you earn it!