Another tax question

[livnlow]

I've been seeing lots of tax questions and looking how everyone is trying to squeeze the most money they can into their pockets each month. I know this might sound shady, but I gotta ask anyway.

Could you file your tax return (without itemizing), submit that return to the trustee, and then file an amendment at a later date (now itemizing) and keep the difference? I'm ok with trying a loophole or bending the law, I just don't want to do anything that is blatantly illegal.

[poorold]

That sounds a little shaky.

What you can do to minimize any refund and at the same time not end up owing money is fill out your W-4 with the number of exemptions is "correct."

The IRS website can help you out or you can go into any HR Block office and someone there will figure it out for free.

[optimistic1]

poorold is correct, that sounds like fraud to me, oh, I gotta be careful using that word around here, nevermind.

Here is the official IRS withholding calculator, you want to just break even each year and only pay what your liability is, which means more money all year, and no check from the IRS. Besides, why would you lend money to the government at 0% interest?

http://www.irs.gov/individuals/page/0,,id=14806,00.html

[rrockinggramma]

The IRS knows you are in a chapter 13 and they notify the trustee's of everything. Your best bet is to change your withholdings.

[livnlow]

poorrold & optimistic: I understand what you're saying but if I get more in my pay each time, the trustee will just take it. I was just trying to get a little extra under the radar.

rrocking: What would the IRS and my trustee be in such a close and frequently communicating relationship? How does the IRS now who my trustee is?

[optimistic1]

poorrold & optimistic: I understand what you're saying but if I get more in my pay each time, the trustee will just take it.

The government is like one big circle, just assume that the trustee and uncle sam can communicate with one another.

Yes he will take it, but, he would take it also if you get big refunds at the end of each year you are in your plan.

There is no way around it.

Your expenses might need to be beefed up a little to add cushion.

[Billssuck]

We get to keep a refund amount up to $2,500. Reason: We figured that into our monthly income and thus it has already been expensed out to come up with our DMI.

[BNKRPTinNC]

I for one would not want to risk a chance of a dismissal to attempt it. Even if it were to amount to several thousand dollars more in my pocket the flip side would be to get dismissed and have to repay everything and put you back to square one, no thanks. In my case, I am paying 0% to unsecured of nearly $90k and to put the extra in my pocket each year for 5 years the risk would not be worth the return. JMHO

When we filed, our returns were never mentioned and was able to keep both state and federal. According to my paperwork the trustee has the right to ask for a copy of returns each year but not required. Would like to hear from others just how nosy the trustee's are during the duration of the plan.