Federal Tax withholdings and Trustee

[BKfiler2009]

Hi all

I'm working on my paperwork and not sure abour our withholdings.

Last year we made around $96000 and owed $ 8600 in Fed tax.(we ended up having to pay $2400 out of pocket b/c we didn't have enough withheld)

So this year, in the beginning of the year I re-did our withholdings to match that amount (same $ 8600)

BUT, we are going to be around $ 86000 for income (paycut on my side)

When I do the IRS calculator, it shows us having a refund of $ /2000 for next year. (which the IRS will get, since we still owe the above amount, minus monthly payments we started)

Can/might/will the trustee just use last years Fed Tax amount or does he/she adjust to todays income?

I want to make sure, that my withholdings are correct.

(Edit - after re-calculating -we are actually paying around $ 38/week to much on taxes right now)


Any insights?

TIA

[Ifonly]

We just filed our paperwork for our CH13 and they used our most recent paystubs, no questions asked. They didn't seem to think about it much. In fact, I was annoyed because they did not include any numbers for state disability or unemployment because my husband phased out already. So I guess that $300/annually will just be my extra burden the first three months of every year. At least it's not a ton of money.

At least your problem seems to be a good problem. It seems to me that you could lower your withholding somewhat, not owe, and then have the small refund (if any) go to the IRS or to the trustee (if the IRS is in the plan, I guess it's sortof the same thing). I wouldn't lower my withholding to the point of possibly owing.

My problem is the opposite. I ignored the states taxes and other minor issues in our papers but I had to fight with them over my husband's tax withholding. Since we're surrendering the house, we won't have enough deductions to itemize anymore and it changes our tax situation drastically. I estimate that I need to have him withhold another $700 - $800 monthly or we'll end up owing over $8,000 to the IRS. They said that I had to use our most recent paystubs. Then I said you better put the extra withholding in as an expense (just like I have to pay my local tax myself). They finally redid the papers...now we'll see what the trustee says.

I guess I don't see how they can argue with taxes. It's not as if I have a choice regarding paying them.