SSD & Withholding Taxes

[LuciluS]

I am 100% disabled and received SSD with only Medicare A & B deducted from my Direct Deposit.

Should I?

1. Call Social Security and request the appropriate taxes be withheld?

or

2. If I don't, will I be able to use the Federal & State Tax withholdings for a Married Person and 1 dependent? I don't think I will be able to use SS & Medicare withholding taxes??

My husband claims Married and 1 dependent. We are filing jointly on 9/30/09 & will be under the Arkansas Median.

Luci

[JoeBankrupt33]

If you want taxes withheld, you need to fill out form W-4V from the IRS.

Are you doing this because you normally owe taxes at the end of the year, or are you trying to increase your expenses for the BK?

Keep in mind that the trustee will be able to take 9/12 (if you do file on 9/30/09) of your tax refund for 2009 unless you can exempt it. So, you may want to carefully consider whether or not you want to increase your withholding.

[LuciluS]

If you want taxes withheld, you need to fill out form W-4V from the IRS.

Are you doing this because you normally owe taxes at the end of the year, or are you trying to increase your expenses for the BK?

Keep in mind that the trustee will be able to take 9/12 (if you do file on 9/30/09) of your tax refund for 2009 unless you can exempt it. So, you may want to carefully consider whether or not you want to increase your withholding.

Well, guess I can't do both huh? LOL! I can't use our income in 2008 as it included a 10 yr. payout on a QDRO (from Ex-husband) and had 20% federal tax withheld. Received $3,800 Federal and $1,800 State Refund.

Did plug in my current husband's 2008 W-2 and my SSD for 2009 into Turbotax for 2008 & it showed a Refund before I began Schedule A (itemized deductions). Husband called HR & they said his W-4 stated Married and 1 dependent.

So Yes, I was trying to find more expenses for Chapter 7, but didn't think about the 2009 refund. Since husband hasn't worked since 4/7 & not sure when he will be able to go back to work due to illness & does not get paid while ill, I will leave my SSD direct deposit as is.

Thanks Joe as you've always given my questions the Pros & Cons LOL!

Luci