Bonus Clawback -- "claim of right doctrine"
Posted: Thu Apr 11, 2019 11:36 am
Hi, I just accepted an offer with the standard bonus $ and 1 year stip that says you need "full year or full clawback."
But I also have a pending application with a public interest group that I will accept if I get offered (already done final round of interviews -- they said it would take several months to get a decision; HR very slow).
So, there's a possibility i might get offered the PI job a month or so after accepting the BL offer, and I am prepared to deal with the financial consequences, but want to be financially prepared.
1. I think it makes sense to ask firm to either 1. delay bonus payout until January 2020 or 2. pay me in installments, citing "tax reasons." Agree?
2. can someone explain the "claim of right doctrine" in plain English? I read it on the IRS and I think I understand -- option 1 is to just itemize, but that still screw you given if you didn't itemize you would have a 12k standard deduction which is free money (does that make sense -- or do i need to communicate that differently); option 2 … makes no sense to me.
https://www.irs.gov/pub/irs-drop/rr-04-29.pdf
MODS: I think if we get a concrete answer on tax implications it could be a useful sticky -- just my .02
But I also have a pending application with a public interest group that I will accept if I get offered (already done final round of interviews -- they said it would take several months to get a decision; HR very slow).
So, there's a possibility i might get offered the PI job a month or so after accepting the BL offer, and I am prepared to deal with the financial consequences, but want to be financially prepared.
1. I think it makes sense to ask firm to either 1. delay bonus payout until January 2020 or 2. pay me in installments, citing "tax reasons." Agree?
2. can someone explain the "claim of right doctrine" in plain English? I read it on the IRS and I think I understand -- option 1 is to just itemize, but that still screw you given if you didn't itemize you would have a 12k standard deduction which is free money (does that make sense -- or do i need to communicate that differently); option 2 … makes no sense to me.
https://www.irs.gov/pub/irs-drop/rr-04-29.pdf
MODS: I think if we get a concrete answer on tax implications it could be a useful sticky -- just my .02