i received $100,000 buy-out of my job. MY take home check was $62,000.How much of this will i get back nxt yr

Question

I am a single male 27 yrs old

Answer 1

Depends on a number of factors and your total taxable income for the year. For example, the tax rate schedule for 2007 for a single filer with income between $77,100 and $160,850 is $15,699 plus 28% over $77,100. So for illustrative purposes, without taking into consideration your standard deduction (or itemized) and personal exemption, $100,000 would result in taxes of approximately $22,111 (the $15,699 plus 28% of the difference between $100,000 and 77,100, which is $22,900; $22,900 x 28% = $6,412 plus the aforementioned $15,699 results in $22,111). 28% represents the highest tax rate you would subjected to provided that your income range is between $77,100 and $160,850.


You indicated that your company withheld $38,000 ($100,000 buy-ot less $62,000 received). Therefore for illustrative purposes you would get back a considerable amount ($15,889) provided that you do not have additional income. Keep in mind, this is a very simple illustrative example since you did not provide a lot of facts. The standard deduction and personal exemption will increase your refund, but you would need to provide more facts to get a clearer picture of expected refund.

Good luck!

Answer 2

If it is all taxed as ordinary income for 2007, I'd say not much. But when you prepare your taxes, check to insure that they did not take too much Social Security tax (FICA) out. Sometimes happens with large payouts.

Answer 3

Clint
START saving now.
put some moneyu in IRA to reduce ur tax bill.
learn how to handle the cash b4 it is gone.
happens too often in buy outs.
visit daveramsey.com to learn ur hard lessons from others mistakes.

Answer 4

Tax refund?

Not much - you probalbly will owe

Answer 5

A lot.