Is it okay to change my W4 to have more taxes taken out before I file??

[lvmcse]

We lost our house. Just realized that without that deduction, I will be paying more Federal taxes this year. Is it okay to change my W4 Federal taxes to have more money taken prior to fileing?

Many thanks!

[HHM]

Yes, you can do it. And given your circumstances, that is a "good faith" reason to change withholding. Will it actually help in the BK context, no way to say (not enough info).

[btbeme]

A heads-up... we are sneaking up on the time of year when Trustees will start to get interested in next year's tax returns. If your withholding increase is to pay for taxes that will be due, you will be OK. You just don't want to increase withholding just to get a bigger refund next year. That refund would likely go to the Trustee.

Anyone who files after (about) mid-Aug to early Sept will likely get a notice from their Trustee that the Trustee will want a copy of next year's tax filings for the expressed purpose of identifying tax refunds that are large enough to grab.

[lvmcse]

A heads-up... we are sneaking up on the time of year when Trustees will start to get interested in next year's tax returns. If your withholding increase is to pay for taxes that will be due, you will be OK. You just don't want to increase withholding just to get a bigger refund next year. That refund would likely go to the Trustee.

Anyone who files after (about) mid-Aug to early Sept will likely get a notice from their Trustee that the Trustee will want a copy of next year's tax filings for the expressed purpose of identifying tax refunds that are large enough to grab.

Thanks for the heads up! Unfortunately without the house, we are coming up short on the amount of taxes we paid.