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 01-21-2010, 03:16 PM
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#1 |
Posts: 5,375
Member #64303
Joined: Aug 2007
Location: Tracy, CA
My Corvette(s)
1970_C3_Stingray 2003_C5_Coupe 1977_C3_Coupe (Sold)
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Do you have to pay taxes on Severance pay ?
Curious.. there are many folk here in the California Bay area losing tech jobs.. I've heard many get Severance packages/pay.
Do they have to pay taxes on it? I'm guessing not, because thats all they have to tide them over till they get a new job.. right ?
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- 2003 C5 Coupe - More
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- 1977 Corvette Coupe (Sold) - More
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 Christopher
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01-21-2010, 03:17 PM
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#2 |
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DC Crew
Posts: 50,788
Member #1
Joined: Jan 2003
Location: Arizona / USA!
My Corvette(s)
Current: 2001, 2003 .... Previous: 1996, 1996 GS, 2002 Z06, 2007
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Quote:
Originally Posted by E_Tar
Curious.. there are many folk here in the California Bay area losing tech jobs.. I've heard many get Severance packages/pay.
Do they have to pay taxes on it? I'm guessing not, because thats all they have to tide them over till they get a new job.. right ?
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Of course you have to pay taxes on it, silly man.  |
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Current:
2001 Corvette Convertible / Torch Red / 6-speed / Z51 / HUD (mine!)
2003 Corvette Convertible / Spiral Gray / 6-speed / Z51 / HUD (hers!)
Previous:
2002 Corvette Z06 race car / "The DC-Z" / Electron Blue (SOLD!)
1996 Corvette Grand Sport / Admiral Blue / 6-speed (SOLD!)
1996 Corvette LT4 / Black / 6-speed (DESTROYED!)
2007 Corvette Coupe / Le Mans Blue / 6-speed (SOLD!)
_____________________________________
VETTE GARAGE TV - WWW.VETTEGIRL.TV |
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01-21-2010, 03:17 PM
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#3 |
Posts: 6,133
Member #66926
Joined: Nov 2007
Location: AZ USA
My Corvette(s)
1992 VERT(sold) & 2002 VERT
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Quote:
Originally Posted by E_Tar
Curious.. there are many folk here in the California Bay area losing tech jobs.. I've heard many get Severance packages/pay.
Do they have to pay taxes on it? I'm guessing not, because thats all they have to tide them over till they get a new job.. right ?
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If it's earnings, it will be taxed.. |
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It's funny how fallin' feels like flyin' for a little while.. Only for a little while..
COURAGE
Is Being Scared to Death, But Saddling Up Anyway.
-John Wayne- |
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01-21-2010, 03:20 PM
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#4 |
Posts: 11,594
Member #38279
Joined: Sep 2005
My Corvette(s)
C6 Z51 VR Supercharged Coupe 600Hp and it's still not fast enough ;)
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That sucks. 
Nothing is ever really "free" anyways. |
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Having children is like being pecked to death by chickens.
There are no shortcuts in life to any place worth going.
Warning: Chick with a Supercharged Corvette and she's not afraid to use it! |
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01-21-2010, 03:27 PM
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#5 |
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DC Crew
Posts: 50,788
Member #1
Joined: Jan 2003
Location: Arizona / USA!
My Corvette(s)
Current: 2001, 2003 .... Previous: 1996, 1996 GS, 2002 Z06, 2007
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Quote:
Originally Posted by REDHTC6GIRL
That sucks.
Nothing is ever really "free" anyways. |
Everything has a cost.... |
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Current:
2001 Corvette Convertible / Torch Red / 6-speed / Z51 / HUD (mine!)
2003 Corvette Convertible / Spiral Gray / 6-speed / Z51 / HUD (hers!)
Previous:
2002 Corvette Z06 race car / "The DC-Z" / Electron Blue (SOLD!)
1996 Corvette Grand Sport / Admiral Blue / 6-speed (SOLD!)
1996 Corvette LT4 / Black / 6-speed (DESTROYED!)
2007 Corvette Coupe / Le Mans Blue / 6-speed (SOLD!)
_____________________________________
VETTE GARAGE TV - WWW.VETTEGIRL.TV |
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01-21-2010, 03:38 PM
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#6 |
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DC Crew
Posts: 283
Member #54376
Joined: Dec 2006
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You pay taxes on all income. Even if it is all you have to tide you over until you have a new job.
If you are going to lose your house and the bank takes it back in a "Short sale" for 50K less than the value you pay taxes on 50K. And that is really when you don't have money to pay taxes or anything else.
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01-21-2010, 04:19 PM
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#7 |
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DC Crew
Posts: 223
Member #10618
Joined: Mar 2004
Location: Dearborn/Mi/USA
My Corvette(s)
62,68,84,and 86
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from whatever source derived including gifts unless there is an exemption
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One owner unrestored 62 FI Vette.
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01-21-2010, 04:23 PM
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#8 |
Posts: 5,375
Member #64303
Joined: Aug 2007
Location: Tracy, CA
My Corvette(s)
1970_C3_Stingray 2003_C5_Coupe 1977_C3_Coupe (Sold)
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That sucks |
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- 2003 C5 Coupe - More
- 1970 Stingray (383 STROKER) - More
- 1977 Corvette Coupe (Sold) - More
- My 2 Vettes together - Pic1 Pic2
Christopher
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01-21-2010, 06:00 PM
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#9 |
Posts: 5,375
Member #64303
Joined: Aug 2007
Location: Tracy, CA
My Corvette(s)
1970_C3_Stingray 2003_C5_Coupe 1977_C3_Coupe (Sold)
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Quote:
Originally Posted by minitech
If you are going to lose your house and the bank takes it back in a "Short sale" for 50K less than the value you pay taxes on 50K. And that is really when you don't have money to pay taxes or anything else.
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wow! That really sucks ass !!! 
I never knew that about foreclosures and negative equity .... |
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- 2003 C5 Coupe - More
- 1970 Stingray (383 STROKER) - More
- 1977 Corvette Coupe (Sold) - More
- My 2 Vettes together - Pic1 Pic2
Christopher
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01-21-2010, 06:21 PM
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#10 |
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You've been pimped!!
Posts: 7,198
Member #80197
Joined: Jan 2009
Location: Orlando, FL
My Corvette(s)
1985 Z51
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You may not have standard wage taxes taken out (i.e, you may not be issued a w-2) but you will get a 1099 and there will be some taxes taken. Most times, severance pay is actually payola. The company is buying your legal rights. Almost 100% of the time there is a general release clause that says you won't sue to company for anything...plus maybe a non-solicitation, non- compete and non-acceptance. All this will vary by state law.
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"Alexa" - 1985 Z51 - In memory of the last Corvette Dad owned. |
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01-21-2010, 06:47 PM
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#11 |
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Grey Squirrel
Posts: 17,030
Member #5040
Joined: Nov 2003
Location: Home, for now.
My Corvette(s)
None, it got repossessed
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They don't have to pay taxes. They can just say their house is a church and therfore exempt from taxes. |
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Don't go away mad just go away. |
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