I have finally thrown in the towel

[lrprn]

I will not be filing until January due to retention bonus in June putting me over means, what do I do about Christmas gifts??

One of the most important lessons that bankruptcy teaches us is that our personal family and friend relationships mean a lot more in the long run than our things....or the gifts we give at holiday time.

There are so many gifts we can give each other at Christmas that don't involve a lot of money changing hands. Take a look at the ideas here - I've used these myself after we filed -

http://www.betterbudgeting.com/articles/money/63giftsunder10dollars.htm

http://www.suite101.com/article.cfm/self_reliant_living/87147

http://rubyglen.com/articles/handmadechristmas.htm

And even better, it's possible to give gifts for free! Give your time - offer a free evening of babysitting for relatives who have small children, offer a half-day out running errands, visiting the doctor, etc to elderly relatives, etc.

And for anyone reading this who might be worried about their own children and how they will feel with less "stuff" under the tree this year, many of us who have already filed discovered to our surprise that when our children understand that we are in tough financial times, they are willing to make the sacrifices necessary to help the family.

In my own family, the very first Christmas after we filed when we didn't have enough to go cut down the live Christmas tree that was our tradition for 20 years, we discovered that even without a tree as our little homemade, thoughtful gifts came out on Christmas morning, we discovered to our delight that we enjoyed the holidays more and appreciated each other more than when Christmas was just a "what did I get and is it as good as what you got?" that I regret to say we had fallen into before. Now my whole extended family has adopted this approach too. No more trying to impress, no more trying to pretend we have more money than we actually do. It's actually quite liberating! We rediscovered the true joy of giving and receiving - one of the most precious personal gifts I've received from our bankruptcy.

[kw1025]

Do the withholding exemption, the most possible under 10, to have the least tax taken out, especially if you anticipate having a big return. The trustee will be entitled to a certain % of that return, so the less the better. If you have an accountant, consult with them too.

[JustOverBroke]

I decided to throw in the towel when I finally realized I was simply pissing in the wind.

I did my towel toss when I went back 12 months on a CC statement of $24,000.00 and $461.00 a month and the balance never dropped below $24,000.00 in those 12 months I knew I was sunk.

That just sucked the wind right out of my sails.

[Mi Bankruptcy]

The IRS requires employers to report on a quarterly basis all employees who have claimed 10 or more exemptions on their W-4. There is nothing wrong with doing so but it puts one on a list that I would not want to be seen on.

I can't say How I know or who I work for. Ohiofiler is right on with the statement.

[hereforinfo]

The IRS requires employers to report on a quarterly basis all employees who have claimed 10 or more exemptions on their W-4. There is nothing wrong with doing so but it puts one on a list that I would not want to be seen on.

I didn't know that! Oh well, we'll just have to take our chances. We were overpaying by a thousand per month so we had to put that many dependents to prevent it. All they have to do is look at the 3 or 4 previous years' returns to see that we were paying in way too much.

[OhioFiler]

No, you are fine to put 18 dependents if that's what gets you closer to breaking even. We have a ton of deductions for mortgage interest and property taxes, so we were getting back a ridiculous refund each year. We changed ours to 24 dependents as per that calculator and still got a small refund. Was that recommendation based on just the rest of this year, or for a full year? Think of it this way, if you get a refund of $4k then you have been overpaying your taxes by $333 each month. You want to put enough dependents so that your employer takes roughly $300ish less per month for taxes.

The IRS requires employers to report on a quarterly basis all employees who have claimed 10 or more exemptions on their W-4. There is nothing wrong with doing so but it puts one on a list that I would not want to be seen on.

[hereforinfo]

Ok, so I should just change my allowances from 2 and filing single to something like 6 and single right? The 18 allowances sounded like a bit much to me as well and I don't want to OWE anything on taxes, I just want to break "close to even" .

Another question, I will not be filing until January due to retention bonus in June putting me over means, what do I do about Christmas gifts?? Has anyone filed right after the holidays and if so, what did you spend for Christmas. I know I will be using cash but are Christmas gifts allowed and if so, will they be red flags if I start alittle bit now so that I can afford to get some of my family a little something for the holidays?

No, you are fine to put 18 dependents if that's what gets you closer to breaking even. We have a ton of deductions for mortgage interest and property taxes, so we were getting back a ridiculous refund each year. We changed ours to 24 dependents as per that calculator and still got a small refund. Was that recommendation based on just the rest of this year, or for a full year? Think of it this way, if you get a refund of $4k then you have been overpaying your taxes by $333 each month. You want to put enough dependents so that your employer takes roughly $300ish less per month for taxes.

[fooked]

you are definitely not alone... that's why we're all here...

[destitute]

Just pay cash for the christmas gifts. I believe there is a line on the bk forms asking about gifts but it says something like non-customary. If you always give christmas gifts to the same people (which I assume is the case) you should be fine as long as they're reasonable gifts (Don't buy a car for your best friend!)

[1969classic]

Ok, so I should just change my allowances from 2 and filing single to something like 6 and single right? The 18 allowances sounded like a bit much to me as well and I don't want to OWE anything on taxes, I just want to break "close to even" .

Another question, I will not be filing until January due to retention bonus in June putting me over means, what do I do about Christmas gifts?? Has anyone filed right after the holidays and if so, what did you spend for Christmas. I know I will be using cash but are Christmas gifts allowed and if so, will they be red flags if I start alittle bit now so that I can afford to get some of my family a little something for the holidays?

[DebtEnder]

If you still get a refund I don't think you have much to worry about. It's one thing to go from a 3-4k refund to a $500, it's another to go from 3k refund to owing 5k or more.

[wantout]

You are all so BRILLIANT!!! Thanks for the adjustment of taxes advice, I did go to the calculator and currently I am having way too much taken from my paycheck weekly, the IRS advice was to change my W4 to single and with 18 allowances!!! for the remaining of 2009!!! WOW!! My refund will amount to about $625 dollars instead of over $3,000.. That is awesome news, as a single mother of one, this extra $400 + dollars a month will truly help me so much. Thank you all for your advice!! Things are lookin' up now if I could only get the 45 phone calls a day from cc's to stop, work, home and cell ugh!!

CAREFULL...

If you do not pay in enough in taxes, the IRS can hit you with a penalty.

[DebtEnder]

18, I think if you do more then 9 you will have to have some extra paperwork to make that happen.

I did the same thing a few months ago but kept it at 8 so I didn't have to do the extra steps(new kid on the way to add to the one I have, not 4 like you). I'm not sure if the IRS would let your payroll do 18, can't hurt to try. Normally they would want some proof of why you need 18 allowances. Can't hurt to be honest with em

[1969classic]

You are all so BRILLIANT!!! Thanks for the adjustment of taxes advice, I did go to the calculator and currently I am having way too much taken from my paycheck weekly, the IRS advice was to change my W4 to single and with 18 allowances!!! for the remaining of 2009!!! WOW!! My refund will amount to about $625 dollars instead of over $3,000.. That is awesome news, as a single mother of one, this extra $400 + dollars a month will truly help me so much. Thank you all for your advice!! Things are lookin' up now if I could only get the 45 phone calls a day from cc's to stop, work, home and cell ugh!!

[hereforinfo]

I am single mom of one, divorced 4 years ago and been basically living on credit cards for some time now, using them for everything my salary doesn't cover.

You were essentially giving uncle sam an interest free loan every month, and then borrowing it from credit cards at a very high rate. Definitely adjust the withholdings so you don't get caught up in the cycle again. As stated above, you should be able to offset that income with expenses.