Question regarding changing W4 form after 341 meeting...

[oc714]

We filed C7 In April and have our 341 mtg scheduled for 6/6/11 my question is are we able to change our dependents on our payroll after this meeting? We are barely making it and this will help us get a little extra cushion. I don't want to do somthing we are not supposed to. Based on our DMI we are negative 280 a month.

Thanks for all your help.

[tobee43]

if it were me, i would wait until my bk was discharged.

if you are JUST at the neg 280 point, i would think you may cut it really too close, and it may cause just undo problems for you. i understand it's hard, but just try and stick it out until it's over... i know it seems live forever..but it will be over before you know it, just hang in there and try not to draw attention. you'll do fine.

[sh9730]

How about the other way - I had many exemptions trying to help me through prior to filing - but of course that caused me to OWE when I filed taxes this year (which I will get on a payment plan for once discharged), and I dont want to pay (as much at least) next year, and now that I ll have breathing room because of the BK, any problem LOWERING my exemptions while still in BK?

[daylate]

In my opinion, (which is worth what opinions are), your withholdings should be irrelevant and you should be able to change them either way. At the end of the year your taxes are going to be $x. I believe the schedules you file should reflect that number, not what your current take home is. In most cases your take home is either over or under what it should be hence the tremendous amount of people who get refunds or who owe. Withholdings affect cash flow only, not taxes for a period. Therefore i don't see it as a big deal. the big deal comes if you estimate your taxes say as 500/month based on withholdings but after doing your tax return you get a big 3 or 4k refund then what you have done is understate your dmi. Again in my opinion.

[oc714]

In my opinion, (which is worth what opinions are), your withholdings should be irrelevant and you should be able to change them either way. At the end of the year your taxes are going to be $x. I believe the schedules you file should reflect that number, not what your current take home is. In most cases your take home is either over or under what it should be hence the tremendous amount of people who get refunds or who owe. Withholdings affect cash flow only, not taxes for a period. Therefore i don't see it as a big deal. the big deal comes if you estimate your taxes say as 500/month based on withholdings but after doing your tax return you get a big 3 or 4k refund then what you have done is understate your dmi. Again in my opinion.

my lawyer made sure we used the correct amount that was being withheld since we had less dependents.

[tobee43]

In my opinion, (which is worth what opinions are), your withholdings should be irrelevant and you should be able to change them either way. At the end of the year your taxes are going to be $x. I believe the schedules you file should reflect that number, not what your current take home is. In most cases your take home is either over or under what it should be hence the tremendous amount of people who get refunds or who owe. Withholdings affect cash flow only, not taxes for a period. Therefore i don't see it as a big deal. the big deal comes if you estimate your taxes say as 500/month based on withholdings but after doing your tax return you get a big 3 or 4k refund then what you have done is understate your dmi. Again in my opinion.

excellent point!! as well as so many use their tax return money as their savings...big no no as far as i'm concerned. but, i see your point and it really makes excellent sense.