I tried to search for this info, but couldn't find it exactly. I'm sorry if it has already been addressed and will try to keep it short.
Our ch. 13 filed in Jan 2011 included back taxes for several years. We were advised to make sure our withholdings were adjusted so that we would never owe again. This we gladly did. Not having any idea how it would come out, we apparently overdid it, because for the first time in years, we did get a refund and it was over $5000 for our 2011 taxes. We were told that anything over $1600 we had to send to the trustee, which we did.
Since we were also told that we should have our withholdings adjusted so that we came out even each year, but not owing. Since our withholdings obviously were too high, we adjusted them after the first year.
For 2012, we only got back $3000 as a result of the change. Since the amount we sent to the Trustee would be dramatically less than before, and I didn't want to raise any red flags, we did not keep the entire $1600 and ended up sending only about $400 less than 2011 refund. I had planned to do another adjustment, but with 3 surgeries during the year, just never got around to it.
For 2013, we again got about $3000, but really need to keep our $1600. I will send the rest to them, but it will only be about 1/2 what we sent on the first year. If we send it all, it will again be about the same for the 3rd year. We are only in a 40 month plan which would be about May of 2014. We did have a couple of extensions when I had my surgeries which will increase the # of months, but it will still be our last year to send in our returns.
Is we keep our $1600 this year, will we have a problem with the Trustee in sending so much less than we did previously? Any advice will be greatly appreciated! And thanks!
Our ch. 13 filed in Jan 2011 included back taxes for several years. We were advised to make sure our withholdings were adjusted so that we would never owe again. This we gladly did. Not having any idea how it would come out, we apparently overdid it, because for the first time in years, we did get a refund and it was over $5000 for our 2011 taxes. We were told that anything over $1600 we had to send to the trustee, which we did.
Since we were also told that we should have our withholdings adjusted so that we came out even each year, but not owing. Since our withholdings obviously were too high, we adjusted them after the first year.
For 2012, we only got back $3000 as a result of the change. Since the amount we sent to the Trustee would be dramatically less than before, and I didn't want to raise any red flags, we did not keep the entire $1600 and ended up sending only about $400 less than 2011 refund. I had planned to do another adjustment, but with 3 surgeries during the year, just never got around to it.
For 2013, we again got about $3000, but really need to keep our $1600. I will send the rest to them, but it will only be about 1/2 what we sent on the first year. If we send it all, it will again be about the same for the 3rd year. We are only in a 40 month plan which would be about May of 2014. We did have a couple of extensions when I had my surgeries which will increase the # of months, but it will still be our last year to send in our returns.
Is we keep our $1600 this year, will we have a problem with the Trustee in sending so much less than we did previously? Any advice will be greatly appreciated! And thanks!
Bankruptcy Wizard
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