Changing W4 before or after Filing Chapter 13??

[button08]

Does anyone know if changing a W4 is permitted after filing Chapter 13? We have not filed our plan yet so should I wait to change w4 after we file? We live in FL, I have been told it varies by district. Anyone out there in the Middle District of FL?

[steveok]

I know for us we was not having enough withheld from our paychecks and had to readjust so we didn't owe a large portion AGAIN...I think it would be frowned on if you change it to get more cash back. I think the goal is really to be as close to zero on your taxes as you can possibly be.

[olivies]

We filed a 7, and the UST is reviewing our case because we are over the median income. (also in mid dist FL). If you over withhold now, and then change your withholding later, there's a good chance the trustee will pick up on that. She did in ours, although we weren't really over withholding, she just failed to take into account that we would lose a credit or two as our children aged this year.

[HHM]

Most trustees are pretty savvy about this issue and sometimes dictate a change in withholding. However, in a chapter 13 scenario, there is no harm in changing withholding after case "confirmation" (not after filing) so long as you get the numbers right and won't OWE tax.

[andy158]

We changed our W4 witholding the first year into our bk13 to "break even" at tax time. Our first year into bk 13 the trustee got everything over $1,500. This year we got a modest refund of $700 and owed the state $56. Next year we will get next to no refund. Its your money and it is just distrubuted over the course of the year instead of getting a lump sum that the trustee can take and make no change to your total payments. Kind of like throwing it away.