When filing bankruptcy do they take your income tax?

This question has been discussed many times here..and there seems to be no hard and fast rule. Certainly, it depends on several things.

Most importantly, is what period the overpayment reflected in the refund really relates to.

For example, say it is a refund for a year and you filed BK in Dec of that year. Basically, all of the tax you paid in was from pre-petition...had you had the correct amount withheld (or by estimated payment, hence no refund of overpayment being made), presumably (and rightfully) that additional amount would have been available to pay those creditors. Consider, you could have had more (even 100%) withheld and deposited in your account with the Government, that shouldn't mean you get to essentially just withdraw it now. (Had you put it in a bank account you wouldn't expect to).

On the other hand, if you file the BK in January, then virtually all the overpayment is due to earnings post petition...which are actually yours and not part of the bankruptcy.

Viewed this way, I think the actions make some sense.

Add in any complications, like you don't make earnings evenly through the period...and it's a question needing a reasonable solution you may need to propose to the trustee.