Filing exempt

[steak]

My case was confirmed last month..I'm scheduled to work almost 40hrs of OT in June..I normally claim 3 on my W4. My question is, can I file exempt just for those 2 paychecks and then change it back in July? Will the trustee know that I've changed my W4? Has anyone done this?

[optimistic1]

Why would you claim exempt? You will end up owing the IRS in the end, unless you correct it by decreasing your allowances.

[justbroke]

My case was confirmed last month..I'm scheduled to work almost 40hrs of OT in June..I normally claim 3 on my W4. My question is, can I file exempt just for those 2 paychecks and then change it back in July? Will the trustee know that I've changed my W4? Has anyone done this?

First, you can't legally file "exempt" unless you fall into a specific class of people... like full-time students. However, you may be able to file more exemptions. For example, I'm currently at 15 exemptions (with 3 dependents). I have had as many as 25 exemptions in the past.

As for will the Trustee know? No.

Has anyone changed their withholding while in-plan? Absolutely. It's actually encouraged because in many Districts, the Trustee takes your refunds!

[steak]

First, you can't legally file "exempt" unless you fall into a specific class of people... like full-time students. However, you may be able to file more exemptions. For example, I'm currently at 15 exemptions (with 3 dependents). I have had as many as 25 exemptions in the past.

As for will the Trustee know? No.

Has anyone changed their withholding while in-plan? Absolutely. It's actually encouraged because in many Districts, the Trustee takes your refunds!

I'll start doing that I thought the most you can claim is 9 without the IRS red flagging you..Not sure if that's true..I'm claiming 3 at the moment..But I'll start claiming more, but doesn't that hurt your net income at the end of the year? Won't the trustee know your net income has increased..Will they change the plan once they see that on your W2? .We normally get about 8k back every year so I figure working all this OT next month and filing exemption, would balance everything out in the end..

[steak]

Why would you claim exempt? You will end up owing the IRS in the end, unless you correct it by decreasing your allowances.

I'm planning to do it for just 2 paychecks..I'd like to get all my OT money...just in case of an emergency..

[steak]

Why would you claim exempt? You will end up owing the IRS in the end, unless you correct it by decreasing your allowances.

I don't think I'd owe..we get almost 8k back from the IRS every year..

[steak]

First, you can't legally file "exempt" unless you fall into a specific class of people... like full-time students. However, you may be able to file more exemptions. For example, I'm currently at 15 exemptions (with 3 dependents). I have had as many as 25 exemptions in the past.

As for will the Trustee know? No.

Has anyone changed their withholding while in-plan? Absolutely. It's actually encouraged because in many Districts, the Trustee takes your refunds!

When you say exemptions do you mean allowances?

[justbroke]

I'll start doing that I thought the most you can claim is 9 without the IRS red flagging you..Not sure if that's true.

The IRS Code only requires that an employer notify the IRS if you claim more than 9 exemptions. I have changed my several times without a peep. The notification just allows the IRS to look at your picture to see if you should be allowed that sort of deduction. I don't even know if the IRS actually does anything. However, the employer is required to notify.

I'm claiming 3 at the moment..But I'll start claiming more, but doesn't that hurt your net income at the end of the year? Won't the trustee know your net income has increased..Will they change the plan once they see that on your W2? .We normally get about 8k back every year so I figure working all this OT next month and filing exemption, would balance everything out in the end..

When would they know? When you file your taxes in the next year? In a Chapter 13, the Trustee generally knows what your income is and on Form B22C you listed how much your payroll taxes were/are. It's not so easy to game the system because they look at your refund.

If your refund is large, then you listed too much payroll tax on your form, so they just keep your refund! if you owe money, then you weren't having enough taken out, so you may actually be paying TOO much into your Chapter 13. However, they won't tell you this... just let you keep paying the higher amount.