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Most BBs offer $10,000 for signing/relocation. In NYC, taxes take about 50%, leaving you with around $5,000 cash. When it comes time for taxes, about how much of that much is returned to you?

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Comments (14)

  • starterup's picture

    not much...and it just counts as compensation, so it's not treated in any special way. When I was a first year analyst at GS, all said and done, I think I got back around $2000 in April of the first year of my being at work. Obv everyone's situation is different, but that seemed to be a good average.

  • TeddyTheBear's picture

    Wow thats really sad that they do not. I know when my bank gave me my signing bonus, they paid taxes on my behalf. So when they told me what the bonus was, thats was the final number post-tax. I assumed most banks did it this way, I guess I was mistaken then.

  • rogersterling59's picture

    I have a question along these lines maybe one of you guys can answer... I am a first year in Chicago, but I had training in NY for my BB so I paid taxes there this summer. I started to file my return last night, but NY is saying I owe taxes for all of the money I have made since moving back to Chicago even though I paid taxes in Illinois for it. This can't be right can it? Can I really owe NY over a grand in taxes for the money I earned in Chicago and paid full taxes on already?

    I would agree with you, but then we'd both be wrong.

  • In reply to TeddyTheBear
    BTbanker's picture

    TeddyTheBear:
    Wow thats really sad that they do not. I know when my bank gave me my signing bonus, they paid taxes on my behalf. So when they told me what the bonus was, thats was the final number post-tax. I assumed most banks did it this way, I guess I was mistaken then.

    Sounds like a loophole that works in their favor.
  • Champs46's picture

    Double-check me on this, but if you are a recent graduate and were in school at least 5 months of the year (graduated in May), you still qualify as a full time student which helps beef up the return a bit.

  • newfirstyear's picture

    You can just turn up your allowances if you feel like. When my annual bonus gets ripped to shreds by taxes, and I know i'll get lot of it back, I just move my paycheck allowances to 3 and collect a higher paycheck through the year.

  • In reply to rogersterling59
    Scott Irish's picture

    rogersterling59:
    I have a question along these lines maybe one of you guys can answer... I am a first year in Chicago, but I had training in NY for my BB so I paid taxes there this summer. I started to file my return last night, but NY is saying I owe taxes for all of the money I have made since moving back to Chicago even though I paid taxes in Illinois for it. This can't be right can it? Can I really owe NY over a grand in taxes for the money I earned in Chicago and paid full taxes on already?

    No. You'll have two state returns (one for each time period) and one federal return. Now getting those bureaucratic a-holes in NY to understand your situation may require jumping through some hoops, but you definitely don't owe NY taxes for time you worked in IL.

  • CountryUnderdog's picture

    Under proposed Obama executive orders, you will owe the government another $10,000.

    "They are all former investment bankers that were laid off in the economic collapse that Nancy Pelosi caused. They have no marketable skills, but by God they work hard."

  • In reply to TeddyTheBear
    Cmoss's picture

    TeddyTheBear:
    Wow thats really sad that they do not. I know when my bank gave me my signing bonus, they paid taxes on my behalf. So when they told me what the bonus was, thats was the final number post-tax. I assumed most banks did it this way, I guess I was mistaken then.

    this was how i got my signing bonus as well, 10k on the dot after taxes

  • theworks9's picture

    YES, you get a majority back via tax return, almost all of it actually.
    No matter what your income is the bonus is initially charged ~25%, as supplemental income

    However, when you start your first year in June and by the time you file your tax return you would of only worked half a year. The IRS is taxing your bi-weekly salary with the assumption that you will be making 70k a year (higher bracket). However since you only worked half a year you only end up making ~35k (assuming a 70k base) + 10k= 45k for the year. This puts you in a very low tax bracket... lets say that tax bracket pays 10% for the year (assumes straight 1040EZ, no itemization/deduction, etc)... thats the difference you make up and why you get a much higher return

  • In reply to theworks9
    iwa1409's picture

    theworks9:
    However since you only worked half a year you only end up making ~35k (assuming a 70k base) + 10k= 45k for the year. This puts you in a very low tax bracket... lets say that tax bracket pays 10% for the year

    Will this be affected by year end bonus though? Or is that counted separately?

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  • eliteculture's picture