Sign-On Bonus Used to Repay Undergrad Loans
I received a 10k sign on bonus from a consulting firm I will be starting at in the Fall. They already took out taxes, so its like $6,xxx. Can I ask the company to take this un-deposited check back and have them pay $10k directly to my loan company (with whom I have more than $10k in loans)? That way I may be able to save about $4k in taxes. Any thoughts on this?
dude be happy u have job. consider the 4k as cost of getting a job.
they're not going to be flexible on such a deal - especially if its a bigger firm which I think in your case is true. Talk to someone junior in HR at the firm who you're in touch with to see if its a possibility though, no harm trying.
you obviously don't understand the tax code at all.
UK student debts are taken out of Pretax earnings, no idea why anywhere would be any different.
delete
There's some conflicting info on this thread.
I have no idea about the U.K., but student loan repayments in the U.S. are always made with after-tax dollars. I had about $9k in loans when I graduated. The only thing deductible is the interest expense. At the end of the year you will receive a tax form, 1098-T I think, from your loan institution. There are certain credits available that you could look into come tax time.
Yes, you can deduct the interest up a certain amount. I think you need to file the deduction form in advance though.
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