Updated Exemptions Prior to Discharge

[BkinTX]

So after the discussion about tax exemptions wherein I learned that ours were set incorrectly and further that it is super easy for me to fix it, I am now wondering if I sincerely have to wait until discharge to make the changes.

We had our 341 in June and are (hopefully) less than 2 weeks from discharge. Trustee has posted "no distribution" on PACER.

Would it be ok to change it now? Or just wait it out? I'm antsy because I've just realized how extraordinarily easy it is to change it.

[poorold]

are you talking about the number of exemptions you claim on your W-4 at work?

Are you withholding too much?

[BkinTX]

Tax exemptions. We are a family of 6 and DH is only claiming 3 currently.

[poorold]

I work seasonally for HR Block. I believe if you visit an office near you they will (for free) evaluate your situation and recommend how many exemptions you should be claiming to make sure you do not end up owing at the end of the year.

If you are looking to use your federal withholdings as a way to get a certain refund, they will also help you to plan for that.

[BkinTX]

No, I don't (think I) need assistance in determining exemptions. I am wondering if I MUST wait until discharge to make changes.

My MIL is our accountant.

Thanks for your reply.

[scorpios]

we have changed ours 3 times and lawyer said fine... we were claiming 0 because we liked the big check but now we need that extra money since paycheck is all we have anymore.
Went to irs.gov and they have a calculator that will tell you (with info from your paystub)what you should be claiming right now to not pay to much or not enough we have our exemptions at 14 right now because we have already paid too much
I wish someone would of let me in on the website because now in az they are taking 2010 tax refunds and they are already going to get about 1000 that we could of been living on!

[scorpios]

oh and hopefully my lawyer is wrong but he said trustee can take federal AND state refunds.

[BkinTX]

We don't pay state taxes, which is nice.

Where would I find the IRS calculator?

Thanks so much for the info. If I can change this now, I definitely will.

[wantout]

oh and hopefully my lawyer is wrong but he said trustee can take federal AND state refunds.

Mine asked me how much of a refund do I get back each year average, I told him between $400 and $500. He said good, if it is over a $1000 the trustee would want it.

[BkinTX]

We get a sizable return each year but the trustee posted a notice of "No Distribution" on PACER. Many on here have said that means we'll keep our return.

I'm definitely not PLANNING on it, but I do think it's a reasonable expectation.

[2manybills]

I was told to wait for about 2 weeks after my 341 if I wanted to change anything.

[BkinTX]

Hmmm...we are 49 days out from our 341...

[PdxDavid]

Seems to me I have read that they usually don't take the refund if you file earlier in the year. If you file in Sept Oct or later then it is more of an issue.

[scorpios]

here in az they are already having you sign a paper saying you forfiet it I guess they do it after the middle af the year. From what i have heard usually they wait till august september but they are being overloaded with people filing.
the calculator is at irs.gov and you click on w-4 link

[Amy26]

I got my refund for this year back in February and was not asked about it. I got married after I filed for bk and my lawyer told me it was fine to change my filing status on my W4 to "married"... which is kinda the same thing.

You don't need a calculator to have someone tell you what you SHOULD be claiming... you can claim whatever you'd like up to 10. If you go over 10, then the IRS will investigate. Any exemptions up to 10 are fine. It all boils down to if you want to pay once a year or get a refund once a year. I prefer to pay them once a year because I'd rather have the extra money pay check to pay check rather than giving a loan to the IRS that they don't have to pay interest on.

I am currently doing 8 but I may have to lower them because of surrendering my home. I was still getting a refund at the end of the year for 8 with my house, but now that I won't have it will have to calc what I will end up owing next year.