wife get's big surprize

[sam5570]

well as most of you know the wife lost her job of 30 year's company shut down she had figured up her severence pay and she new how to figure the taxes she done mine for year's for the people who worked for me. ok today she got her first check and they taxed it at 40 percent she is fit to be tied. so look out if you end up in this deal you will know what to expect.we were figuring 27 percent because of the ss increase.

 

[dave1949]

The payroll system probably treated your wife's severance check as if it were one of a regular weekly or monthly pays instead of a one-time shot.

 

[300UGUY]

well as most of you know the wife lost her job of 30 year's company shut down she had figured up her severence pay and she new how to figure the taxes she done mine for year's for the people who worked for me. ok today she got her first check and they taxed it at 40 percent she is fit to be tied. so look out if you end up in this deal you will know what to expect.we were figuring 27 percent because of the ss increase.

She should get much of that back when she files taxes next year. It sucks, but that's the way things usually work.

 

[hawkeye08]

Just be glad it is not much more... I fully expect our taxes to go up more.

 

[KTurner]

She should get much of that back when she files taxes next year. It sucks, but that's the way things usually work.

Yep, this gives eleven months to sort out how to maximize the refund. Stinks that the gov is getting an interest free loan from you in the meantime though.
Also, be glad it wasn't in December. You'd have no time to react as far as changing things to help lower taxes and the severance plus the years salary together in one year would have made the taxes that much worse.
Silver lining....
Keith

 

[orezok]

You can always under withhold for the rest of the year to get back close to even.

 

[etcallhome]

When I retired early over 4 yrs ago. I could have taken one lump sum ,or over 4 yrs. Our investor advised taking it over 4yrs ..Yes still paid taxes but not at a much higher rate.

 

[forgeblast]

Sounds like it was taxed as a bonus.

 

[sam5570]

she didnot take a lump sum she get's 4 payment's over the next 6 months. so they will get 40 percent of each check oh well it happens.

 

[murphy1244]

i wish you could tell her that she only weights 98 lbs but it's a tough 98

Not me, I ain't that brave and I wasn't trying to be mean either.