surplus income when spouse pays no tax at source
I am 7 months into my bankruptcy. For the first time this month, my new wife`s income will need to be included in my report. However, I`m not sure how much income she should report. She is paid by a research fellowship (an award a bit like a scholarship). No income tax is deducted at the source, but she is expecting to pay about 10000 in taxes this year, and puts aside several hundred each month towards April`s tax bill. Should I report her gross, or anticipated net, income?
Book an appointment to see your trustee. If the income is taxable then I suspect they will help you estimate how much tax needs to be paid (and ask for proof that you’ve paid it). Then if the fellowship covers a period of time – say a semester or two – they may divide the aftre tax amount by the period it relates to in order to have a monthly amount for you to report. At least, that is how we would handle it.
Regardless, give your trustee a call and ask them.