Payroll Change before 341

[jrny2freedom]

My 341 is feb 24th. I have always claimed 9 dependants on my w-4 so that i could have more money on my check. i then pay my taxes with my yearly bonus. Given the changing times and the realization that bonus' may become a thing of the past, I lowered my deductions amt to 4. Now my check is going to be 400.00 a month short. Should i advise my lawyer now (before my 341) or wait and see what the trustee says? I don't think I can make it on 300.00 a month - for electric bills etc... But, i know i would have a very hard time coming up with money to pay taxes next April. any advise would help!

[justbroke]

I answered this as you asked this same question in another thread. (You may want to not put questions in two places, as this makes it hard to follow the thread and is duplicative). Below is my response...

Let's get through some basics of income in a Chapter 13.

A Chapter 13 is calculated based on your gross income. It is the value that you get paid before taxes. Then, the Means Test and Calculation of Current Monthly Income Form (Form B22C) allows certain deductions.

One of those deductions are for payroll taxes. You shuold tell your lawyer so that your plan can be adjusted accordingly. If you submitted that your taxes are, say, $1,000 per pay period, when they are actually, now, $1,400 per pay period, then that's $400 that you need to address.

I had a similar issue. I claimed 25 exemptions on my withholding statement W-4 (family of 4). Since filing, and surrendering one home, I had to reduce that to 15 exemptions and adjust my CMI/DMI calculation accordingly. (DMI - Disposable Monthly Income)

I don't know how you only have $300/month to live. The form (B22C) is used specifically to calculate what your DMI is, after paying reasonable expenses according to the IRS allowances.