The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/severance-dilemma-21943596.aspx

Subject:  Severance Dilemma Date:  1/21/2005  12:00 PM
Author:  Yikes51 Number:  75693 of 121100

Will someone please offer their advice?

I received a $65,000 lump sum severance (i.e., 9 mos pay) in Nov 2004 as I was laid off from my company. I am considering rehire with this company in 2005 ... out of state. Part of the "re-hire" scenario is that I must repay the pro-rated remained of the severance.

I will be hit hard with taxes in 2004 due to the lump sum bolus. Is there any way for me to recoup my tax "loss" caused by the lump sum. Because I'll have to repay most of it (gross) in 2005?

How can I handle this unique tax situation and not be left holding the bag?
Thanks,
Pat
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us