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Thread: Lump Sum Advice
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Old 09-03-2015, 05:33 AM
Senior MemberPLEDGERPLEDGERCaptains Club Member
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Originally Posted by LI32 View Post
You are going to pay dearly for that success.
Assuming your regular income is $200k or more, that additional $750k will be taxed as ordinary income at 39.6% federal + Medicare at 2.35% and any state income taxes; and at close to $1m in income your tax deductions will be virtually zeroed out (you will still get $17,000 in 401k contributions and any charitable contributions, but that is about it) by the claw back rules, so your withholding on your regular salary, if it wasn't at least 30% federal will be low and you will owe even more at year's end.
Hope you enjoy the government bend-over as much as the rest of us who don't pay our fair share of taxes.
Exactly correct.