Taxes

[ccgirl]

I am 4.5 years into a 5 year Ch 13. I have a new snafu. Each year I have to send my taxes to my trustee and send any refund amount above $1601. Well each year we have gotten a refund but this year we owe. GRR. I believe it is because my husband got a new job and when he filled out a w-4 he put too many exemptions and he used to be an mechanic so we had a bunch of tool deductions. He now has a desk job so we don't have work deductions.
What will this do for my ch 13. I am afraid that my case will be dismissed so close to being able to be discharged. I filed ch 13 on my own and so my husband is not currently in the ch 13.
Thanks for you insights!

[13for60]

I don't see why your case would be dismissed. You have to pay your taxes - that's this issue at hand. The fact that you owe will not affect your TT's opinion of

your case in any woay, I would think.

I do my taxes and sometimes I owe and sometimes I don't. It does not affect my case.

--13for60

[runner4life]

You should have added the refund as income and keep your refund every year.

[ccgirl]

They added $1601 of it as income and I can keep anything up to $1601. The $1601 was what my refund was the year I filed.

[andy158]

You can make monthly payments to the IRS over a 12 month period. Trust me they want your money and will work with you. You will pay a small penalty for not paying the full balance due at one time and about 7% interest. My oldest son owed close to $1,000 last year and he made payments of $85/mo for 12 months. This month will be his last payment.

Your attorney will probably ask you if you can work the payments into your budget for the remainder of your bk provided it isn't some huge tax bill. With such a short time to go before your plan is complete I would hate to think to make adjustments to your plan payment.