clockworkorange
Junior Member
What is the name of your state? Illinois
I've taken a job that pays a $20,000 sign-on bonus after 90 days work. However, I am then obligated to work 4 years for the company, if I leave I have to pay back the bonus. After federal taxes, my bonus is more like $13,000. My concern is that if I quit within a year or two, I will owe more money to the company than I had actually received in my pocket.
If I quit before the 4 years, am I totally out of that $7,000?
A friend told me that I could pro-rate the bonus over 4 years, to keep from being kicked into a higher tax bracket this year. Is this true? I normally do my own taxes, but if I can pro-rate the bonus, I'll get an accountant this year.
Thanks so much for any advice you can give.
I've taken a job that pays a $20,000 sign-on bonus after 90 days work. However, I am then obligated to work 4 years for the company, if I leave I have to pay back the bonus. After federal taxes, my bonus is more like $13,000. My concern is that if I quit within a year or two, I will owe more money to the company than I had actually received in my pocket.
If I quit before the 4 years, am I totally out of that $7,000?
A friend told me that I could pro-rate the bonus over 4 years, to keep from being kicked into a higher tax bracket this year. Is this true? I normally do my own taxes, but if I can pro-rate the bonus, I'll get an accountant this year.
Thanks so much for any advice you can give.