quick question about bonuses

A

AmadeusM

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Jul 1, 2004
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I just got a sign-on/relocation bonus, and the govt was kind enough to take one fourth of it (Tony Soprano, you can learn something here).

Anyway, if a person was to hypothetically sever the employment relationship, would that person be owing the prorated amount as a percentage of the bonus before the taxes or after the taxes (or rape, in this case). I am guessing before, but I don't know.

P.S. I can at least find some comfort in the fact that my new State doesn't have a state tax, so I can at least somewhat control how much those greedy pricks can take away.

Thanks. :D
 
I would think that the government hasn't taken the money yet, only withheld it. In other words, if you had enough deductions at the end of the year, you could get some or all of it back.

So if you refuse the job and return the entire bonus, the withheld amount comes back to you -- when you file.
 
If you are moving because of a job change and are moving more than something like 50 miles, then many of the expenses of the move are tax-deductible. Go to the IRS website and download their publication on the subject. Also, download the form and see what you'll be filling out. This is a commonly abused deduction, so it's an audit hot-button, so be carefully to keep all necessary documentation. That's why you should read the IRS publication in advance.
 
Unfortunately I took the lazy man's route and left my furniture and stuff with my brother in MN and replaced some of it down here. The idea of loading and unloading Ryder trucks never appealed to me. :D

I will look through the suggested reading and try to learn something, at least for the next time. Thanks.
 
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