Taxes rape severance checks...

[indamixx99]

So I got my final check today from CompUSA since this was our last day. Out of the $3580 I was given, $1539 went to uncle sam?? That's 43% that was taken out. Is this normal? Man do I feel robbed!

 

[Vinfinite]

wow thats some crazy taxes

 

[jme5343]

I believe it is normal on one time payouts. Bonuses and back pay checks suffer the same fate. Some law passed in 2002 or so.

 

[armstrda]

also due to the fact that taxes are calculated like you will make that much each of the rest of your paychecks for the year. So say you normally make 1000 2 times per month, that would be 24000 per year, so the taxes are based on that, but then you get a check that is 5000, then the taxes are based on the assumption that you are making 120K a year

 

[ponyo]

You'll get it back tax time.

 

[FoBoT]

yeah, vote for the politicians that want to raise your taxes

 

[Jahee]

What a load of ******!

 

[Queasy]

Originally posted by: jmebonner
I believe it is normal on one time payouts. Bonuses and back pay checks suffer the same fate. Some law passed in 2002 or so.

Yes, it is normal. No, it is not from 2002. It has been going on long before then.

Anytime you get a bonus or severance check it is taxed at the highest tax bracket. They do this in case this bonus or severance check sends your income into a higher tax bracket than you normally would be and you end up owing the government a big chunk of change.

They figure it is better to owe you when it comes time to file taxes so they can make sure they've gotten their money.

FairTax anyone?

 

[RU482]

it all comes back at the end of the year, no?

 

[bsobel]

Originally posted by: redly1
it all comes back at the end of the year, no?

It all comes back at the end of the year + the time it takes you to file + the time it takes them to refund. All the while your giving the government an interest free loan.

 

[RollWave]

keep voting Democrat.

 

[HamSupLo]

keep voting republican, guess who's getting the tax cuts?

 

[JS80]

Vote for Democrats, Republicans are evil :roll:

 

[FreshPrince]

incentive checks also

 

[Leros]

Originally posted by: bsobel

Originally posted by: redly1
it all comes back at the end of the year, no?

It all comes back at the end of the year + the time it takes you to file + the time it takes them to refund. All the while your giving the government an interest free loan.

Can somebody explain what is wrong with giving the government an interest free loan? I don't understand economics very well, but I fail to see a problem with giving your government money so that it can operate. There must be something I don't understand.

 

[waggy]

Originally posted by: Leros

Originally posted by: bsobel

Originally posted by: redly1
it all comes back at the end of the year, no?

It all comes back at the end of the year + the time it takes you to file + the time it takes them to refund. All the while your giving the government an interest free loan.

Can somebody explain what is wrong with giving the government an interest free loan? I don't understand economics very well, but I fail to see a problem with giving your government money so that it can operate. There must be something I don't understand.

they can operate just fine without the interest free loan. they are just going to pay it back when you file tax's.

when you can take that money and invest it, pay off CC's faster etc.

 

[OVERKILL]

Having taxes is one thing and it's easy to understand why we have them, however an excessive amount of taxes is just plain robbery.

The offending organization might as well wear a ski mask and use a gun when conducting these type of unreasonable legal demands ( excessive amount of taxes).

 

[AlienCraft]

Originally posted by: FoBoT
yeah, vote for the politicians that want to raise your taxes

That would be all of them. None of them volunteer and their salaries all come from tax money.

 

[Greenman]

I'm going guess none of you remember the pre-Regan years when the top tax bracket was 90%. So nice to get a big fat 10k check and get to keep 1000 bucks.

 

[PingSpike]

Originally posted by: Leros

Originally posted by: bsobel

Originally posted by: redly1
it all comes back at the end of the year, no?

It all comes back at the end of the year + the time it takes you to file + the time it takes them to refund. All the while your giving the government an interest free loan.

Can somebody explain what is wrong with giving the government an interest free loan? I don't understand economics very well, but I fail to see a problem with giving your government money so that it can operate. There must be something I don't understand.

Giving the government extra money is like giving a crack addict extra money. He's not going to use it to buy a new suit and get a job, he's just going to snort it up his nose.

More importantly, that money isn't the governments...thats why you get (the extra) back at the end of the year. The IRS charges you interest and fees if you don't pay on time, but you don't get interest and fees from them if they take to much.

The entire time that money is not in your hands, it is losing value due to inflation. You could put it into a saving account to mitigate that loss, but only if you actually had it.