I owe back taxes from several years ago that will be discharged through bankruptcy. I will also have a tax liability for the for 2013 that I will be able to pay. Will the income for this year be used to pay prior or current year taxes?

ANSWER

The BIDaWIZ Team's Answer:

For the taxes you owe in prior years, are you on a payment plan with the IRS or have those taxes already been discharged through bankruptcy? If you have the ability to make a choice, it's best served to pay the current year in full. If your prior year back taxes have already been discharged via bankruptcy, then the payment for the 2013 tax year will only apply for that year.