What is the name of your state? Michigan
I am a new graduate and am currently negotiating a contract for employment. My future employer is offering a sign-on bonus of $3000 as an incentive to work at the company, contingent on employment for at least 2 years. I realize that this sign-on bonus would be considered income for tax purposes. However, since I have many student loans to repay, my future employer has offered to make the bonus check out to the financial institution that holds my student loans. He states that this will save me from paying income tax on the bonus. Is this true? Will I still be taxed on the bonus, even though it is not coming directly to me?
I am a new graduate and am currently negotiating a contract for employment. My future employer is offering a sign-on bonus of $3000 as an incentive to work at the company, contingent on employment for at least 2 years. I realize that this sign-on bonus would be considered income for tax purposes. However, since I have many student loans to repay, my future employer has offered to make the bonus check out to the financial institution that holds my student loans. He states that this will save me from paying income tax on the bonus. Is this true? Will I still be taxed on the bonus, even though it is not coming directly to me?