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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15443
Experience:  15years with H & R Block. Divisional leader, Instructor
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I have a Chapter 13 bankruptcy. I pay $1,735.00 per month to

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I have a Chapter 13 bankruptcy. I pay $1,735.00 per month to the Trustee. The bankruptcy was designated to be a business bankruptcy. I use TurboTax to prepare my taxes. How do I designate the payments to my best tax advantage?
Submitted: 6 years ago.
Category: Tax
Expert:  Robin D. replied 6 years ago.
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Robin D :

Hello and thank you for using Just Answer.

Robin D :

If you’re paying mortgage interest in Chapter 13 bankruptcy and/or defaulted mortgage payments, those payments may be deductible from your taxes. If you’re paying federal or state taxes, spousal support or business debts/expenses through the Chapter 13 bankruptcy this may also be deductible from your taxes.
In short, the same deductions you were taking prior to the bankruptcy are listed on your return while you are paying the trustee. You may need to speak with the trustee to receive the correct allocation for interest amounts.
I sincerely XXXXX XXXXX information is helpful,

JACUSTOMER-iinp3kxh- :

This is not what I am asking. I do not have a mortgage. I want to know how to designate the payments on my tax return. What Schedule do I use?

Robin D :

You can only use the payments on your tax return if you are making payments that would be deductible if you were not in Chapter 13. The payments in and of themselves are not tax deductible and not entered on your tax return unless the payments are going to debts that you were claiming already as tax deductions (mortgage, state and local taxes, business expenses...).

Robin D :


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