Probably will have to pay federal income tax for 2011 ???'s

[basketsbears]

It seems people talk about the refunds a lot. If we do get one, although I would like to keep it, if it goes to the UST that's OK.

I ran our figures on the IRS board which indicates if we don't change our W-2 for the rest of the year we will owe about $900-$1000. We are not paying my husband's old house mortgage this year like we have every year before so we would not have the interest deduction.

My question: Should I change my W-2 for the last two pays of the year to make up for the tax, or just pay it next year and change W-2 for 2012? Also can we list the expense somewhere on our list of expenses for something we will have to pay in the next few months if it works that way? Last year our refund was $2800 - so I don't know if that would "fly" with UST. If we file in January and I change my W-2 to increase my deductions we could end up using the higher tax deductions on our expenses correct?

What do you all suggest is the best way to go?
Thanks!

[HHM]

You could change withholding, but it will have little impact. I wouldn't bother and some trustees and districts get irate over that act.

Yes, if you know you are going to owe tax, you can claim it as an expense, however, generally, (depending on district), you can only deduct the 60 month amortized payment because that is how it would be paid in a chapter 13. For example, if you will owe $5,000 income tax, may not be allowed to deduct $500 per month payment, instead, they will likely only allow $83.33.

The will keep your case open, regardless, to see what, if any refund you get.