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Changing Tax withholdings over the years

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    Changing Tax withholdings over the years

    Hello, I have a question about tax withholdings. We used the IRS website to recalculate the 2022 taxes to ensure that we have enough to pay the tax bill. But we also did it in a way that we either break even or get a small refund (less than $800). So the question is, are you allow to change your tax withholdings during the plan to ensure your that 1) one doesnt get a refund 2) one doesnt end up owing taxes to the IRS? Would the Trustee complain that one may be "manipulating" the withholding to avoid paying the refund to the creditors? Sorry if this question has already been answered. I couldnt find something related to this topic. Thanks!

    #2
    You can absolutely change your W-4 during your plan.
    Latent car nut.

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      #3
      Yes you can do it. They won't care if you change it for two reasons. If you overwithhold, they take your tax refund if it is less than 100% Second, you might be required to submit every paycheck going forward until your plan is confirmed.

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        #4
        Thank you both!

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          #5
          My first year I got a large tax refund due to income changes and my attorney instructed me to change my withholding so that I get nothing back. I did it last year and use the IRS Withholding calculator, it worked perfectly and I owed $200.00. My attorney was happy about it and my trustee didn't even mention it. Definitely get as much out of every paycheck as you can. Bonus if you make this adjustment after your plan is confirmed and you get a few extra dollars in your check!

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