No Refund?

[Mark80]

Is this always true?




If they take your entire refund every year, what do they do with it? Does it apply to the total amount left to pay back?

[Flamingo]

The tax refund money, if kept by the Trustee, will be distributed to your creditors over and above the amounts stated in your Plan inasmuch as the funds are additional income during the course of your Plan. In plain words, your creditors will receive more.

[Mark80]

Its kind of a weird way to do it though. I mean it even says to go ahead and have less held out each week to make the end amount even. So you can infact work out a way to get most of that money. *shrug*

[Cali]

Its kind of a weird way to do it though. I mean it even says to go ahead and have less held out each week to make the end amount even. So you can infact work out a way to get most of that money. *shrug*

We changed our exemptions because we wanted less taken out and more in our checks. We did this way before we knew we would have to file. This year we got back 285$ in Fed and I had to pay 2$ in State.

[Mark80]

We changed our exemptions because we wanted less taken out and more in our checks. We did this way before we knew we would have to file. This year we got back 285$ in Fed and I had to pay 2$ in State.

So I guess if I am planning on filing I need to take off two of my exemptions. My house interest alone always kicks back money. I would honestly rather just owe at the end of the year then have to hand it all over.

[lrprn]

So I guess if I am planning on filing I need to take off two of my exemptions. My house interest alone always kicks back money. I would honestly rather just owe at the end of the year then have to hand it all over.

Mark, the goal is to adjust withholdings to make sure you get a little back - just not a lot. Finding out you owe a large tax bill when you're in Ch 13 and finding a way to pay it on a tight budget can be very challenging.

Here's a link to a good IRS workbook to calculate what you need to withhold to keep your national tax refund to a minimum - http://www.irs.gov/pub/irs-pdf/p919.pdf

And remember unless your employer has a specific rule against it, you can adjust withholdings whenever you need to during the year.