Can filing chapter 7 bankruptcy in California in Nov. 2008 affect my california and federal tax returns for 2008?can filing chapter 7 bankruptcy in Oklahoma in October 2008 affect my Oklahoma and federal tax return for 2008?
Anything which is financial in nature, such as bankruptcy, will have some effect on your income tax return. A professional needs to know more about your specific tax return. Typically, a CPA can best answer questions regarding the details of your return but in general, you still owe income tax on your 2008 income. One cannot go bankrupt on taxes unless certain specific criteria are met which include how long you have owed the taxes.
Note that a tax refund for the pre-bankruptcy period paid to you after you file may be property of the bankruptcy estate, subject to any cash exemption to which you are entitled. You should consult your bankruptcy counsel concerning the impact of any anticipated refund. In the event you were unaware that a refund was due to you at the time you filed, but learned of it afterwards, you should made your bankruptcy trustee aware of it as you will likely be required to deliver that part of it attributable to the pre-bankruptcy period to the trustee.
The foregoing is for informational purposes and does not constitute legal advise.