Sign on Bonus

[kalster]

Does it help to take sign on bonus in installments as against 1 shot in terms of the tax on it

I am going to get about 10k for a new job I am accepting, I am wondering if there is any way around the huge (40% i think) tax due on it

 

[z0mb13]

nope...

bonus = rape me in the ass taxes

 

[jadinolf]

Originally posted by: kalster
Does it help to take sign on bonus in installments as against 1 shot in terms of the tax on it

I am going to get about 10k for a new job I am accepting, I am wondering if there is any way around the huge (40% i think) tax due on it

This is something you might want to discuss with the employer.

Anyway, good luck.

 

[markgm]

You get them back come tax time so it's not really that big of a deal.

 

[Engineer]

Originally posted by: z0mb13
nope...

bonus = rape me in the ass taxes

Up front yes. On end of year, no. (Well, depends on how big the bonus is - whole new tax bracket).

 

[Descartes]

Nothing you can do unless they distribute it differently. Calling it a bonus == a tax write off for them. Even if they distributed it as income they'd still have to pay payroll taxes on it (~7.4% I think).

Perhaps they'd be willing to take it and make additional contributions to whatever investment plans they have instead? You won't get the money, but it might be deductible to you and them. Depends...

 

[z0mb13]

Originally posted by: markgm
You get them back come tax time so it's not really that big of a deal.

doesnt this depend on how much ur taxable income is? or is there a special tax thing for bonuses??