Retroactive Disability Tax Credits

April 6th, 2012 by Questions

I was discharged from my 2nd bankruptcy in 2009 and have since received notice that I qualify for Disability Tax Credit dating back to 2005. Will all the refund go to my trustee or will I be able to keep some myself? If I had received this during my bankruptcy wouldn’t I have been able to keep some as a Surplus Income Standard? Could I use that now?

Posted from: Alberta


One Response to “Retroactive Disability Tax Credits”

, A licensed trustee said:

Any tax refunds for the year you filed for abnkruptcy and any previous years will be forwarded to your trustee for the benefit of your unsecured creditors. Any tax refunds for the year after you filed goin forward should be sent to you (unless you specifically signed them over to your trustee as part of your discharge).

Tax refunds are not treated as income so you would not have been able to keep any portion of the refunds for the year of filing and previous years. You simply lose your refunds becuase that’s the way the law is worded – I don’t agree with it, but it is still the way the law works.

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