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How does declaring bankruptcy affect my
tax return?
In the year of bankruptcy a taxpayer must file two tax returns. The
first tax return reports for the period prior to bankruptcy, and is
called pre-bankruptcy tax return. The second reports for the period
between the date of bankruptcy and December 31. It is called the
post-bankruptcy tax return.
Pre-bankruptcy return:
Your income for the period between January 1st and the day before
bankruptcy is included on pre-bankruptcy return.
Post-bankruptcy return:
Your income for the period from the day of the bankruptcy until the
end of the year is included on post-bankruptcy return.
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