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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2832
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I am retiring and they are giving me a buy out how much can

Customer Question

I am retiring and they are giving me a buy out how much can I expect after taxes I live in ny state and 58 years old the buy out has 31000 and 2 all my sick and vac that come to 41000. need help to see if I will do it, Mike
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you today.

Based on 2014 tax rates, the federal tax for the $41,000 is $6113 (if you file single) and $5246 (if you file married filing jointly). The NY state tax is $2316 (if you file single) and $1989 (if you file married filing jointly).

However, additional information is needed regarding your TOTAL income for the year (not just the buyout amount) to provide a more accurate answer. The buyout amount will be added to your other income for the year, and you will then pay tax on the total, less any amounts for taxes that are withheld during the year and for the buyout payment.

Please let me know if you require further information or clarification.

Thank you and best regards,

Barb