- Joined
- Aug 23, 2005
- Messages
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Nah, that money would also then be taxed.....
I've received awards with cash offsets for taxes*. It's an easy calculation.
Assume tax withholding by the organization at 40% fed+state (as an example). Award is valued at $50K. Divide $50K by 0.6 to get $83,333 which will be the total award value added to your income. That extra $33,333 will be withheld as tax on both the $50K award and tax on the cash offset. So you get your $50K award and paid your taxes on it without having to cough up extra cash.
* LOOK AT ME! I GOT AN AWARD!**
Regards,
Chris
** stupid leg lamp