I received $100,000 pre-tax for accepting a buyout from my employer. After taxes I was left with 59,000. Wow! I am single/not a home owner. How can I get some of this money back next year? It seems unfair..
2007-09-24 11:51:38 · 2 answers · asked by Elle 3 in Business & Finance ➔ Taxes ➔ United States
That will be added to your other income and taxed as ordinary income. There's not a whole lot you can do to make a major impact on the tax bite. Stack as many itemizeable deductions as you can on this year's return if you have any wiggle room. Your income will be high enough that you won't get any benefit from contributing any to an IRA either.
Don't waste your time asking about income averaging -- that's been gone for over a decade.
Sorry, but those are the facts of life.
2007-09-24 13:11:01 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Welcome to the world of, The Rich Don't Pay Their Fair Share Of Taxes. The Only way I know is to buy a house and do what is called, Income Averaging next year. Check with a good accountant and they should be able to verify this and give you some ideas. Good Luck
2007-09-24 12:34:00 · answer #2 · answered by Johnny Reb 5 · 0⤊ 1⤋