Quote:
Originally Posted by Rain Man
It makes no difference on taxes at all as long as you get it all in one year. It makes a difference in withholding. If you take it all at once, the default withholding policy is to assume that you make that amount every pay period and withhold you at the top rate. If you take it over time, the default withholding policy is that you make the smaller amount each pay period, and a more appropriate amount will be withheld.
Having said that, you can control the withholding. It's not set in stone. As long as you can manage your money, you should take the whole thing as soon as possible and arrange to have maybe 25 percent of it withheld in one step. You should get the money in your grubby little hands as quickly as possible.
|
I would definitely like to have the most money, as soon as possible. I have no qualms about managing it.
If it comes in, say, 100 separate checks on the same day, does it withhold at the lower rate, or does it count them all under the same pay period, and thus withhold at the higher rate?
Also, how do I adjust the withholding rate, and what is the ideal rate that I can adjust it to?
Thanks!