daisymay

Schedule J - Unreasonable?

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Do the following figures seem unreasonable for Schedule J for a single person filing bankruptcy in AZ who has monthly income of $2400?

700-----Rent

150-----Electricity

50------Water

60------Cell Phone

285-----Food

30------Pet Food (dog is claimed as an exemption)

86------Clothing/Dry Cleaning

28------Household Supplies

31------Personal Care Products/Services

87------Miscellaneous

60------Out-of-Pocket Med/Dental/Prescriptions

256-----Car Payment

130-----Car Insurance

300-----Gas/Oil

100-----Car Maintenance, tires, DMV, etc.

480-----Taxes (calculated @ 20% of 1099 income $2400 / month)

2833-----Total expenses

2400-----Less: Montly Income

(433)-----Deficit

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They don't seem unreasonable at all. Are you anticipating a 20% tax rate? Just curious where you got that figure.

They will want a copy of the last two years tax returns.

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This percentage was given to my daughter as a rule of thumb used by other 1099 earners to estimate their taxes, allowing for some business expense. I'm mulling over the thought that it would be better to calculate based on the IRS Tax Table instead and then come up with the monthly figure. But it will probably reduce the amount to put on Schedule J.

My daughter is providing prior year returns. The last couple of years she was a wage earner in another state until moving to AZ a year or so ago. She has been working in her current job for about 6-7 months now.

Any other insight or advice is appreciated! Thanks.

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That is very reasonable for expenses. On 1099 income make sure you include almost 13 percent for social security plus your applicable tax rate. I would guess you are already under on median income not knowing your state. As a sidenote, US Trustee just came out 11/1 with revised median household income figures.

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