A bill has been introduced in the Kansas legislature to exempt federal earned income tax credit. The law, if passed, would protect the funds from seizure by creditors.
Earned income credit is money the federal government gives to low-income individuals and families in the form of tax credit, which is paid in the form of a tax refund even if no taxes are paid or owed.
H 2060 has been referred to the House of Representatives Judiciary Committee. If passed into law, it would be effective upon publication in the statute books.
My fellow blogger, Dana Wilkinson of the Bankruptcy Law Network, wishes for an EIC exemption in her recent post, “Wanted-Exemption for Earned Income Credit.” Perhaps her wish will soon be granted for Kansans.
Related posts:
- Earned Income Tax Credits Now Exempt in Kansas Bankruptcy Debtors will get to keep one year of earned income tax credits when filing bankruptcy in Kansas. A new law...
- Will The Bankruptcy Trustee Take My Tax Refund in Kansas? A common question I get this time of year is whether the trustee will take the debtor’s tax refund if he files...
- Tax Refund in Bankruptcy Cathy Moran on the Bankruptcy Soapbox reminds us of an important asset in bankruptcy: tax refunds. Your federal and state...
