NY-Based Firms 3L Salary Advance Forum

[Anonymous User]

For NY-based firms that give 3Ls a salary advance not signing bonus, is that taxed when we get it as 3Ls, or later when we are first-year associates? So, for example, if firm says we are getting 10K salary advance, is that really net 8k now or we get 10k now and then taxed later when we start?

[2014]

This very well may be firm dependent but my advance last year was not taxed up front.

[Anonymous User]

It should not be taxed as a matter of law. It's a loan, not income. (Unlike a stipend, which would be taxed.) You'll have the tax withheld as you incur the income that repays the loan.

[dixiecupdrinking]

It should not be taxed as a matter of law. It's a loan, not income. (Unlike a stipend, which would be taxed.) You'll have the tax withheld as you incur the income that repays the loan.

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