Bankruptcy Requirement of Filed Tax Returns in Pennsylvania

| Aug 25, 2017 | Bankruptcy Law |

In order to proceed with a bankruptcy, federal, state and local tax returns that were required to be filed must be filed for the last four years in a Chapter 13 and for the last year in a Chapter 7. In other words, if you did not make enough income to file a tax return then you do not need to file that return just for the bankruptcy. If you are a Pennsylvania resident, you must file a PA tax return if you had income of more than $33.00. While this is a nominal amount, not all money received counts as income, such as social security. Pennsylvania law lists eight classes of income, including compensation, net profits from business, income from rents, dividends, interest and gambling losses among others. Consequently, if a bankruptcy is being considered, make sure tax returns are filed

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