posted by mikevotes at
I was laid off in January 09. I got severance in a lump sum and it was taxed to the hilt. We finalized our sons adoption in 09. I started working in September. With the adoption credits and the exorbitant tax on my severance my wife and I are getting 21K back. Hell Yeah! Hundreds of thousands aren't so lucky but it just makes the 6 months of looking and being a supplicant for any job a little easier. And I feel better as a man because I'm providing for my family.Also the Obama administration had/has a 66% COBRA subsidy so I was kept from personal bankruptcy by this administration. Thank God for President Obama and his administration.
By Matt, at 7:17 PM
21K back? Wow. I always kinda wonder about that. How did we get a system where the government gets to hold onto 21K of your money for a year.Frankly, I don't have a real problem with paying taxes, but them holding onto my money that could be earning interest or whatever has always bothered me.
By mikevotes, at 9:33 PM
Well my severance was 30K and the IRS extrapolates that out to being paid that much every month. That pushed me into 36% bracket. I only cleared 17K. There's a dollar-for-dollar 5K tax credit for adoption. Then we were able to claim over 12K in adoption expenses. With my income falling into the lower tax bracket I got a ton of the severance money back. Then there's my wife's income and the income I earned in the 4Q09. I also got credit for what I spent on COBRA. The money that I really could of used was the 8K that the IRS took from my severance. We've learned our lesson. Save every last dime. No sprees, nothing big. Hold on to it forever!
By Matt, at 10:25 PM
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