Being able to understand your personal tax situation year to year, can be one of the best financial moves you can make. Many people do not take the time to understand their situation or talk to a professional to get help. They end up with a huge tax bill from the Internal Revenue Services or the Franchise Tax Board. This can be avoided by speaking with a tax professional and setting up your pay check withholdings correctly.

When you withhold the correct amount of taxes on your pay checks, you accomplish two things; ensuring you have a minimal tax bill or no bill at all if you usually owe and might put more money in your pocket throughout the year if you usually get a big refund. Changing your withholdings on your pay checks can usually be done through your employer’s HR department or whoever handles pay roll.

“What do I do if I already have a large amount of tax debt I owe?”

Bankruptcy can be a viable and useful tool to help eliminate some or all of your Tax Debt. Many
people are not aware that a chapter 7 bankruptcy can eliminate certain tax debt owed to the IRS
(Federal) or FTB (CA State). There are some limitations and qualifications that have to be met in order to do this however. Chapter 13 bankruptcy can allow you to have all of your tax debt paid back on a monthly plan over 5 years, stopping the IRS or FTB from garnishing your pay or levying your bank accounts. In a chapter 13 bankruptcy, all of your tax returns must have been filed from the previous 4 years.

Overall, bankruptcy can be a solution that will free you from the burden of tax debt. Be sure to
reach out to your local Stockton Bankruptcy Attorney at 209-952-0355 to see if we can help you and your tax debt.

The post One of Life’s Only Guarantees: TAXES appeared first on Law Office of Seth L. Hanson.