Chapter 13

[joshinwa]

So I have a unique situation.

im filing chapter 13 shortly. My income is a little wacky though and im not sure how the trustee will look at it.

im paid an hourly rate. I receive a per diem for lodging and food due to work. That per diem could end at any given time with little to no notice. It's a significant amount ($2,400 after taxes) that's both combined and it's paid once a month.

The paralegal I spoke to said it doesn't matter, the trustee will view it as income. But I also don't want to give false information. I want to be as transparent as possible.

any ideas or advice?

thank you!

[FicoMike0]

Does your employer show it as income? Is it taxable? When I've been paid per diem, it was always separated and not taxed. It's not income if it's reimbursement for work expenses incurred.

[joshinwa]

Unfortunately it's taxed. They are separate checks and it does state specifically for lodging on one and for food/meals on the other. I don't believe it should be counted as income. Seems a little unfair to me, at least in the BK sense. Can't control the IRS part of it lol

[Patient957]

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@joshinwa wrote:

Unfortunately it's taxed. They are separate checks and it does state specifically for lodging on one and for food/meals on the other. I don't believe it should be counted as income. Seems a little unfair to me, at least in the BK sense. Can't control the IRS part of it lol

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Not a CPA, but yeah, it counts as income but you can deduct your expenses at tax time.  As for the BK, idk how that works exactly, but it won't be the first time they've dealt with a situation where a filer has variable income.  You should probably ask your actual lawyer.  Paralegal might not always have the answers.