Hi mazam, welcome to our community! My first bit of advice to you would be to seek the assistance of an experienced tax advisor, or personal financial counselor. Depending upon the terms and details of your award or settlement, the answer could vary from situation to situation, varying with state tax laws as well as national.
We have a wide array of experienced members here who might be able to direct you if you have additional details of the settlement that you would like to share. Were you an original partner of the company, a shareholder, or an employee? Details such as these will help us direct you in the correct direction.
Again, welcome to the community! I look forward to reading our member's answers, and wish you the best of luck in resolving your tax situation.
Thank you for responding. I would love to share details.
I was an Employee. To retain me as an employee they gave me 10% of business
in 2005 in the letter it states.
"You will be given 10% ownership in the business, currently valued at
$162500.00, which is based on $650000.00of current annulized revenue. You
will be fully vested on January 1, 2011, your only restriction is that the
shares cannot be transferable by you to anyone."
On Wed, Apr 16, 2014 at 3:19 PM, Moderator Rebecca <
Hi all new to this site and could really use some help.
I was awarded 10% of company in 2005 and it would be fully vested in 2011. In 2013 I left company and they have to pay me out $150k
I advises them to give me a 1099 and now they are saying it should be a W2 and I will have to pay all the tax which comes out to almost 45%.
anyone have any ideas on this? it would be greatly appreciated