Can I change exemption withholdings on my payroll for one months overtime check?

[chp13]

I'm currently in chapter 13 and I'd like to know if I can change my exemption withholdings on my payroll without causing any problems with the trustee. I have a overtime check I'm expecting and a change in my exemption withholdings for this check would really help me out. I'd only be making a change for this single time. If I were tomake the change I'd be getting about $2,500. Nothing crazy.

Am I allowed to make this change?
I don't have my ch 13 payment withdrawn from my paycheck, I send a money order every month.

[Guest123]

Your lawyer is the only one that can answer that as it can go both ways.
We can change ours as we please per our lawyer and don't even have to let them know.
We just changed it so we don't get much of a refund this year.

[katztoo]

We changed ours last year so we would have more take home pay and the trustee decided we had more disposable income and increase our chapter 13 payment by the extra amount we are taking home. This was discovered by them on a rutine income check they did by requesting our pay stubs. We are not in a 100% payback so they want ALL of our disposable income. This happened in year 4 of a 5 year plan. Don't do anything without checking with your lawyer first!

[chp13]

^^^ I will check with attorney first, but seems like you changed it for a longer period as to a single paycheck.

[kornellred]

Your employer's payroll department will probably have an issue with such a request. You cannot just customize federal withholding amounts to suit your situation.

[momofthree]

We're in Eastern Dist of CA and can change our withholdings whenever we want to without issue. Check your confirmation order. You're probably fine.

[Guest123]

Your employer's payroll department will probably have an issue with such a request. You cannot just customize federal withholding amounts to suit your situation.

This makes no sense at all.....why can't you?
You can change your tax withholds to what ever you want as much as you want.....if your plan allows for it.
I had one employer that would ask if you wanted to claim exempt during the holidays to bring extra home.

[Pandora]

Your employer's payroll department will probably have an issue with such a request. You cannot just customize federal withholding amounts to suit your situation.

I'm not understanding this statement either; hubby has changed his withholdings (both state & federal) several times throughout the year on different occasions to adjust accordingly. Payroll has no say in the matter - its an employees right to change their withholdings at will. The only issue I'd see is that per most Ch. 13 plans, you may require Trustee permission to do so.

ETA: Ahhh....just caught that the OP only wanted to change it for THIS particular payperiod due to OT so as to get more $ in the paycheck. It makes no sense to change withholdings for 1 payperiod only to change it back the following. Many times it takes a full pay cycle to implement the change. Besides, you will have to account for that extra earning at tax time anyway and you dont want to owe Uncle Sam at the end of the year.

IMO - I'd leave it alone

[chp13]

Prior to filing I had changed it many times especially during holidays and large overtime periods then I changed it right back. When I would change it I would go exempt. It's a very commen practice in my line of work. I guess my attorney would be the only one to answer my question.

[IamOld]

You can change your withholding at any time and as many times as you like as long as you don't claim more than 10 exemptions.

This is just to answer the "payroll" question.

[chp13]

Ok just spoke with my attorney. He said I need to be "zero'd out". I don't want to owe or have a return. So I'm good! I still need to get with the person who is doing my taxs to further figure out what to do to not have to pay taxs.

[LadyInTheRed]

You can change your withholding at any time and as many times as you like as long as you don't claim more than 10 exemptions.

This is just to answer the "payroll" question.

It's not true that you are allowed to claim more exemptions than you are entitled to.

You sign a W-4 under penalty of perjury and you are supposed to claim the correct number of exemptions. You can decrease your exemptions to increase withholding, but you can't legally increase exemptions to decrease withholding unless you claimed fewer exemptions than you were entitled to in the first place or had changes to justify an increase in exemptions. But, it is not up to the employer to determine if the number of exemptions you claim is correct. Unless they have been informed otherwise by the IRS, an employer should withhold based on the information on on the last W-4 you submitted.

From IRS website http://www.irs.gov/individuals/artic...139412,00.html:

Q8: What should I do if an employee submits a valid Form W-4 that appears to be claiming an incorrect withholding amount?
A8: You should withhold federal income tax based on the allowances claimed on the Form W-4. But, you should advise the employee that the IRS may review withholding to ensure it is adequate, and that the IRS may direct you, as the employer, to withhold income tax for the employee at a certain rate if the review indicates the employee’s withholding is inadequate. Once this occurs the employee will not be allowed to decrease their withholding unless approved by the IRS.

See page 13 of IRS Publication 505 for info on civil and criminal penalties for providing false info on a W-4.

[karm43]

I would leave it alone you might end up owing taxes I believe that would be new debt. I do not think your employer would do this for 1 time plus it would probaly take a couple pays for it to go into affect.

[chp13]

You can change your withholding at any time and as many times as you like as long as you don't claim more than 10 exemptions.

This is just to answer the "payroll" question.

Why 10? Does this send a red flag?

[IamOld]

10 is what you can do w/out POSSIBLY having to provide proof. Then it's up to the employer to ask for it - if they care/bother.

:-) 26 exemptions for most people will zero out your taxes completely - for many, 10 will also do :-)