Taxes owed during chapter 13

[BubbaGump]

I went through Turbotax and found that I will likely owe about $2400 in federal income taxes (offset a little by about $250 in state income tax refund). My employer made an error at the end of the year and didn't do federal withholding for the last two paychecks of the year. If I end up being able to claim my son as a dependent this year, my tax owed will be closer to $400. Since the money wasn't withheld at the end of the year, I still have the money in the bank.

With regard to taxes - during a chapter 13 plan one is required to pay all taxes owed to the state and the fed, correct? So I'd have to just write a check for the $2400 and be done with it, and the trustee gets a copy of the return at some point through my attorney? This is my first year in chapter 13 so I don't really know/understand the procedures.

Thanks in advance for any assistance.

[HHM]

Well, correct. If you owe tax, you need to pay it. As you are aware, you really shouldn't be owing tax while in an active 13. But this sounds like a mistake.

If you can't make that payment, contact your attorney and explain the situation. Assuming you didn't hire a bargain basement attorney, he can request a temporary forbearance of your chapter 13 payments and that would likely be granted since the fact that you owe tax this year is due to someone else' mistake.

[BubbaGump]

I still have the money, thankfully. This wouldn't have been an issue had there not been a $3000 401k loan distribution in 2009 after changing jobs, and it will be a virtual non-issue if I can convince the divorce court to allow me to claim my kid as a dependent this year. Oh well - easy come, easy go I guess.