Deductions after filing?

[rjl0206]

to all,

planning to file june maybe july, I yet have to read up fully on W-4 and deductions. I have always claimed 0 and single all my life even after marriage because i did not want to owe the irs!!!.

Anywho!1 I see alot of posts stating to change your deductions/exemptions post filing. Just wanted to get a basic idea for my situation from the community as to my situation. Married with 2 kids with a mortgage. Income for both myself and my wife are at $145k per year +/- $2000 depending on OT offered. What sort of deductions/allowances am I looking to changing for after I file? I plan thus far to changing into Married status on W-4 and claiming myself and my two kids, not my wife because she has an income from what I have read thus far. thanks all.

Ray

[BigJohn]

I would take the full deductions and stick the 'extra' into a retirement account. This way you keep your money and don't have to worry about turning over your 'refund'.

[lrprn]

I have always claimed 0 and single all my life even after marriage because i did not want to owe the irs!!!.

Using Uncle Sam as a zero-interest savings plan where the gov't gets to use your money tax-free for a year....not in your best interests, and especially not after you file Ch 13 if you are in a district where your trustee will take all of your tax refund every year you are in your plan.

What sort of deductions/allowances am I looking to changing for after I file? I plan thus far to changing into Married status on W-4 and claiming myself and my two kids, not my wife because she has an income from what I have read thus far. thanks all.

Here's a couple of links to help adjust withholding deductions and figure anticipated returns from the IRS that help you set your deductions appropriately - http://www.irs.gov/pub/irs-pdf/p919.pdf (paper form) and http://www.irs.gov/individuals/artic...=96196,00.html (online interactive form)

Set the deductions up so that you'll end up getting a little back - like $500 or so - to prevent having to pay taxes during your Ch 13. Also this way if your trustee is one that takes the whole return, you won't lose very much and will have more cash in hand to help weather unexpected emergencies all year long.

You can adjust withholdings any time during the year that your employer allows it. Most don't restrict it. We check our withdrawal figures with our anticipated return every quarter to ensure we are on target to not get a large return every year (the custom in our local bk court is our trustee takes everything over $2K).

[rjl0206]

quick question,


ok, so I change my W4 POST filing and am good for the rest of the year, but then what if next year the trustee see's my income tax return which show's my changes, wont he/she just come after my extra DMI that I get once I change my W4? thanks all.

ray

[Flamingo]

Do you owe taxes each year now or get back a refund? Will your itemized deductions drastically change for this tax year for your family or will things remain somewhat the same? You need to find the fine balance between not getting a large refund and not having a large balance to pay. It can be difficuilt the first year of a Chapter 13. Most folks prior to filing increase their exemptions (i.e, if claiming one or zero previously, up it to the fullest possible exemption) to get more money to come in and pay bills. If you don't change that after filing, you can end up with one heck of an amount owing if you don't work the numbers.

I suggest that when you retain an attorney since you make a large income to go over that situation with him/her and find out if the trustee will have any interest in any refund during your first year in Chapter 13 (or later years also) and he can guide you as to what goes down in your district so you can figure out what to do. It is confusing and just another thing that can drive you nuts in trying to figure out financial affairs during a Chapter 13.