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    ivyjenson's Avatar
    ivyjenson Posts: 1, Reputation: 1
    New Member
     
    #1

    Mar 3, 2007, 12:13 PM
    What to do with a Sign-on-bonus
    Can I have my sign on bonus given for 2006 tax year even though I started working January 8th, 2007?

    I don't like how my $5000 sign on bonus reads: 10% simple interest if I do not stay 3 years, payable upon termination, and that if they took me to court I may have to pay their court costs. I was not given relocation expenses. The person that hired me and my recruiter say that hospitals don't usually ask for the money back. Should I sign or how should I ask the terms to be changed?

    If I take the $5000 sign on bonus tax wise what is the best thing to do with it?
    1. Pay off my $5000 student loan?
    2. Put it in a 401(b) or other investment?
    3. Have it given for 2006 tax year since my income was $0?
    4. Have a percentage of it paid per year or per month?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Mar 5, 2007, 10:45 AM
    You will pay taxes on the bonus in 2007. You CANNOT push it back to 2006.

    If you take the bonus, take it all at once. About 30% will be withheld for taxes.

    Personally, I would invest it.

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