The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Severance Dilemma||Date: 1/21/2005 12:00 PM|
|Author: Yikes51||Number: 75693 of 124774|
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?
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