New Ohio Law Exempts Child and Earned Income Credit

26 Oct New Ohio Law Exempts Child and Earned Income Credit

The Child Tax Credit and the Earned Income Tax Credit are now exempt in Ohio, putting these sums of money out of reach of creditors and bankruptcy trustees.

The new Ohio exemptions statute that went into effect on October 1, 2008, § 2329.66(A)(9)(g), exempts from creditor claims in bankruptcy the Child Tax Credit and the Earned Income Tax Credit claimed on federal income tax returns. These refundable credits can result in substantial tax refunds for working middle-class Americans with dependent children in the home.

Unlike Ohio, most state laws do NOT specifically exempt the Child Tax Credit, the Earned Income Tax Credit or tax refunds. Do NOT spend any tax refunds without the express permission of your bankruptcy trustee. Debtors should consult with their own attorneys to determine what law applies to their own bankruptcy cases BEFORE spending any tax refunds. Ohio debtors should find out from their attorney if the new law applies to their bankruptcy case if it was filed before October 1, 2008.

Spending tax refunds that belong to the bankruptcy estate can result in denial of the bankruptcy discharge and a referral to the F.B.I. or U.S. Attorney for criminal investigation.

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Brett Weiss, a senior partner at Chung & Press, LLC, represents people and businesses in all phases of bankruptcy. He has experience in complex individual Chapter 7, Chapter 11 and Chapter 13 bankruptcy cases, and in Chapter 11 small business restructuring and reorganization. Mr. Weiss lectures nationally on bankruptcy issues. He has testified before the Federal Bankruptcy Rules Committee, the Consumer Financial Protection Bureau, and has twice testified before Congress on bankruptcy and credit issues. Brett Weiss is the co-author of Chapter 11 for Individual Debtors, and has written Not Dead Yet: Bankruptcy After BAPCPA, for the Maryland Bar Journal, as well as hundreds of blogs for the Bankruptcy Law Network. With his law partner, he recorded a 13-hour basic bankruptcy training series, and leads intensive three-day Chapter 11 training boot camps. Mr. Weiss has received international media attention in connection with his work. He was interviewed by Barbara Walters on The View, has appeared on the Today Show, Good Morning America, ABC News with Peter Jennings, the Montel Williams Show, National Public Radio, AARP-TV, the BBC World Service, German state television, and numerous local radio and television programs, and been quoted in Money magazine, The Washington Post and The Baltimore Sun, among others. Brett Weiss is the Maryland State Chair for the National Association of Consumer Bankruptcy Attorneys, a founding member of the Bankruptcy Law Network, on the board of the Maryland State Bar Consumer Bankruptcy Council, and a member of the American Bankruptcy Institute, the Bankruptcy Bar Association of Maryland, and the Civil Justice Network. He has been recognized as a “Super Lawyer” every year since 2007 for Maryland and the District of Columbia, and in 2011 received the Distinguished Service Award from the National Association of Consumer Bankruptcy Attorneys for his work on behalf of consumers across the country. Mr. Weiss is admitted to practice before Maryland and District of Columbia federal and state courts, the United States Courts of Appeals for the DC, Fourth and Eighth Circuits, The United States Tax Court, and the Supreme Court of the United States, and has been practicing law since 1983.
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