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.

 

[Thomas]

Its depressing as he77..more you make the more they take to give away.

 

[turnkey4099]

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

Yep, went through that myself way back when. I don't know what it is called now but has something to do with averaging. I had to mention it to my tax preparer to get it though.

Harry K

 

[forgeblast]

Was there a way that she could have it put into a say 401k or other type of retirement savings plan to save on the taxes?

 

[larry s novotny]

Hey join the crowd, I worked for TWA and AA retired in 08.Partner and figured to get around 50,000. wow that really sounded good until I got my last paycheck ended up with a little over 20,000. Know your feelings. I questioned why we couldn't diversify some and that was like talking to a brick wall

 

[sam5570]

Was there a way that she could have it put into a say 401k or other type of retirement savings plan to save on the taxes?

Forgeblast they were not given a option of what they wanted to do with there money she is in the process of rolling over her 401 into a roth ira . bottom line is the company just told them what was going to get and when they would get it and that's it alot of question's were ask but no answer's were given. the company didnot tell the employ's what the exact plan was till there finnal day of work they were handed a packet that explain when and what would happen.

 

[SPIKER]

It must have been a BAD WEEK, I too was let loose along with about 30 of my coworkers from our plant. The company was bought out by one of our "Competitors" who said they just wanted to integrate products. well after 1 month they said we could no longer build the same sized machines & that we could not sell into china anymore (one of our major markets.) the next month they decided to tell us to cut middle management and engineering overhead (which cost my job.) I'm getting 5 weeks severance at about 60% of what I was making. Monday I'm going to talk about going back to school & see if I can get back some of my tax $ in form of finishing my bachelors in engineering on the States/Feds dime for being downsized.

Mark

 

[Bikewanderer]

40% sounds about right. Unfortunately that's just how it works.

About half my pay comes as a bonus based on sales commission and overall profitability, both of which I am directly responsible for. About half goes to the government and I seem to never find I overpaid. :smiley_aafz:

 

[Brokermike]

Be careful about rolling the old 401(k) into a ROTH. If it was a pre-tax 401, rolling it into a ROTH will cost you a bunch in taxes. Check with your financial advisor or accountant.

 

[dmccarty]

It must have been a BAD WEEK, I too was let loose along with about 30 of my coworkers from our plant.
Mark

Sorry to hear of the job loss. More and more it just a question of when, not, if.

Later,
Dan

 

[SPIKER]

Emailed one of my former co-workers he is still working there but got moved from engineering into shipping & receiving.

From what I could tell they cut the higher paid people and Engineering department was hit pretty hard. along with the Customer Support department so I'm thinking they did this to push the company into going under. (Remember one of our BIGGEST competitors had bought us out 3 months ago.)

They did not say anything yet about the 401Ks of which I have already done the shift into my IRAs for 2 or 3 jobs in the past. I'm great with that as I SELF Manage my IRA in Scottrade and invest in the market. I'm up about 30% in 5 years of self investing whereas the 401Ks all were lucky to break even and in the one case it was 40% loss on my capital circa 2001

I had eye doctor appt setup weeks ago for today. Got there only to find out the insurance also was canceled the day they let us go even though they said they were going to continue to take out our medical payments from the severance checks...

I DID stop at the Department of Veterans Affairs county office about getting "Re-Educated" hope they dont apply me to the "Obama reeducation camps" otherwise I might figure out I'm better off setting at home playing video games for 99 weeks while texting on my obama phone... Next thing ya know I'm voting for democrats :O (Ahh J/K guys I would NEVER do that )

Mark