Tax
Illinois
Income tax refunds and earned income credit
Although an unpublished decision, the court's reasoning is beneficial in cases involving income tax refunds that consist of earned income credit. The decision cites other cases in support of Judge Ginsberg's decision.
Earned income credits are exempt as public assistance benefits under the Illinois exemption statute.
The purpose of the earned income credit is to help working poor families meet basic expenses, and the purpose of the exemption statute is to protect poor debtors and their families from being left completely destitute. The relationship of these goals, particulary when viewed in light of the effect of exemptions on the Bankruptcy Code's fresh start policy, led the court to that the debtor's earned income tax credit was exempt.
Decision opens in Acrobat Reader
