Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I have been offered a retention bonus of $60,000 payable at…

I have been offered a...
I have been offered a retention bonus of $60,000 payable at the end of a 30 month term. The bonus accrues 25% in 6 months, 50% in 12, 70% in 18 months, 85% in 24 and finally 100% in 30. Should I, or could I pay taxes on the accrued amount or wait until the lump sum?
Show More
Show Less
Ask Your Own Tax Question
Answered in 6 minutes by:
7/5/2013
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,220
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Robin D :

Hello and thank you for using Just Answer,
Your income is taxable in the year you receive it have have access to the amount. You would not be allowed to include the payment unless you received the payment.
Unfortunately, if you wanted to pay taxes before your receipt of the bonus, you would not be allowed.

Customer:

Its not an enormous amount of money but I would have to pay taxes on the $60k when I get it? Makes the retention bonus seem fairly small.. :(

Robin D :

I understand but until you are paid the amount it is not included in your income.

Customer:

Ok.. Makes sense.. Thank you so much!!

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,220
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified
Robin D. and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,220
18,220 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

18,220 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I am considering a lump sum buy out from Metlife, but I am
I am considering a lump sum buy out from Metlife, but I am concerned about the taxes. What are some suggestions for reducing the taxes I will pay? The amount of the payment is $31,000. Thanks for your… read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
111 satisfied customers
My technology startup business is a S-corp with 3 original
HI, My technology startup business is a S-corp with 3 original co-founders out of which 2 left after sometime in the company. So in returns for 2016, I chose K1 as final for those 2 partners assuming … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I am a 74 year old single female. My retirement date is set
I am a 74 year old single female. My retirement date is set for the end of December 2018.My current salary: $55k per year Gross pay per month: $4,231 Net pay per month: $1,733 Note: Each two week pay … read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
848 satisfied customers
My wife is being -off from her job at the end of the month
Hello, My wife is being laid-off from her job at the end of the month and is getting a lump sum bonus check and severance pay for 12 weeks. Would "either" of these checks be taxed at a higher rate tha… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
If I am selling equity in my company at the following terms,
If I am selling equity in my company at the following terms, help me understand the final conversion.If I take $1,000,000 from an investor at a pre-money valuation of $4,000,000 and the convertible no… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
How does one analyze two offers from employer of receiving a
How does one analyze two offers from employer of receiving a lump sum of $44k now versus $205./mo for life at a current age of 52 and healthy ? Which is the best choice ?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,444 satisfied customers
My position was eliminated (after 32 years with company)
My position was eliminated (after 32 years with company) effective 2/29/16. My severance agreement provided 8 months' salary continuance, paid biweekly through 6/30 and remainder in lump sum. I just g… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I have been offered VSP thru work (voluntary severance package)
I have been offered VSP thru work (voluntary severance package) with work ending Oct 30 and then a generous package but the taxes will be large since i will have worked almost a whole year first then … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I retired 3 years ago. My school district had granted me
I retired 3 years ago. My school district had granted me "Accommodations" for a disorder I have. Prior to leaving, I had submitted all my paperwork, including My official Accommodations paperwork. Ste… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
18,220 satisfied customers
My ex-wife got a lump sum SSA-1099 payment in 2013 of $44,683.10.
My ex-wife got a lump sum SSA-1099 payment in 2013 of $44,683.10. It included years 2010, 2011, 2012, and 2013. She had no taxes taken out but had $6000 in Attorney's fee's taken out and $944.10 taken… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have hired a tax attorney to help me with a payment plan
I have hired a tax attorney to help me with a payment plan with the irs. I owe over 100K. My mother in law hired the same one and i just learned that her attorney just told her that her disposable inc… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
a company has offered a lump sum settlement of $7,730 under
a company has offered a lump sum settlement of $7,730 under a Long Term Disability Policy. the indiviual is 55 years old and the monthly payments are $100 each month. I have two questions. One, will t… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am contemplating about purchasing an income tax practice
I am contemplating about purchasing an income tax practice in New York. What is an acceptable muliple to pay and payment conditions. How should you finance the purchase… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
if i am terminated and receive a lump sum settlement (a lump
if i am terminated and receive a lump sum settlement (a lump sum that does not prevent me from working) can i still collect employment insurance. i've worked steady for 30 years and have made contribu… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
My husband is a dentist and we owe $130,000.00 in back taxes.
My husband is a dentist and we owe $130,000.00 in back taxes. Last year we agreed to pay back $4,000.00 a month and we did for several months until we were unable to pay. IRS wanting their money. Is t… read more
Dave Z
Dave Z
Self-Employed
Bachelor
418 satisfied customers
I have a question on the calculation of the taxability of
We have employees who started in March of 2007. We are took the difference between their coverage (full-year salary) and the $50k exclusion. We took this difference and prorated it (multiplied it by 1… read more
MequonCPA
MequonCPA
CPA Firm Owner
Master's Degree
2,165 satisfied customers
On a severance pay , what is more advantageous lump
On a severance pay , what is more advantageous: lump sum distribution, quarterly or yearly distribution? What any of the terms means? will the tax be the same on either method used for deductions? I w… read more
Christopher Phelps
Christopher Phelps
Sole Practitioner
Master Degree
1,180 satisfied customers
Calculating One Number Cost Basis for 1.5 yr history
i purchased stock thru company DRIP starting 1/03 with monthly and sometime weekly purchases. I sold all in 4/05. How do I determine coast basis with a running history of so many purchases and income … read more
Jon Andrews
Jon Andrews
CPA
2,926 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x