tax question

[jmac]

Pretty sure i know the answer, but first year of doing taxes without a home after filing 13 got slammed with owing 5700.....any advice on handling this? I have changed my withholding to offset next year, but this year im screwed....

[Flying2BK]

I am in the same boat, just found out I owe $9500 ! (OUCH!) and am waiting for my "Bar Date" to find out what my CH-13 plan will look like. I had my 341 last month. I didn't expect to owe so much~

Should I tell my Attorney and include the $9500 in the plan? I could withdraw some money from my 401K to pay it off....or a payment plan?

Any ideas appreciated!

[jmac]

I had already put some money i owed to the irs in my plan, but im confirmed and on my 5th payment...

[lrprn]

Immediately contact your lawyer and let he/she know about the new taxes owed. Because these taxes came due after filing, you can't add them to your plan. However, it is possible to amend your plan because of the new tax debt that must be paid.

Obviously take a close look at your tax withholdings now for this year and (if your trustee allows) make adjustments NOW so this won't happen again.

If your trustee is one that takes all or some of your annual tax refund (if there is one), your goal should be to break as close to even as you can and still be on the "don't owe Uncle Sam" side of things. Uncle Sam makes the very worst savings account anyway.

[Billssuck]

Agree with what lrprn said. Last year we owed IRS and had to modify our ch13 plan to surrender our house due to husband loosing his job and we could have amended to include what we owed the IRS as well. But we decided to pay the IRS with money we would have used for our mortgage payment instead (we only owed about $1,000 unlike your amount). This year I adjusted my withholdings very well and got a $25 refund from the IRS; that's about as close to zero as you can get. But to do that, I had to withhold about $250 more a month to make up for loosing my mortgage interest deduction when itemizing.