yes, i have a question changing my w-4 form for federal income tax. i estimated my taxes for this year and looks like i have a fair income tax that will be returned to me. i plan on filing in a month or better.Is it legal to change my exemptions so less tax is taken out in this stage of pre filing for bankruptcy.And also can the trustee take a state income tax return refund?
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Check your exemptions and ask your lawyer on the state income tax.
Yes, it is completely legal to change your exemptions to get less tax taken out and reduce you refund. However, talk to your lawyer and see if your trustee normally cares about refunds. Ours was interested and we lost part of our refund, but not every district or every trustee works the same way. Additionally, you may have an exemption that would cover it. So talk to your lawyer about possible changes.
However, on a practical matter it is best to make sure any refund you recieve is small. Why, give uncle sam an interest free loan for the year if you don't have to?
Here is a link to the irs calculator to help you figure out what to set you deduction at.
Filed: 10/26/2006
Discharged: 03/05/2007
Closed: 5/19/2008 - Asset case due to balance transfer and income tax refund -
Yes, you can change your payroll deductions through your employer at any time throughout the year.Originally posted by glc4122 View Post
I don't know the answer about the state tax refund. Sorry.Filed Ch. 7 Pro Se: 12/11/08
341 Meeting: 1/7/09
Trustee's Report of No Distribution: 1/9/09
Discharged: 3/10/09Comment
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