Originally Posted by
130JDrvr
Then who pays the taxes on the extra $6000?
Past....
Uhh, you owed $12000. To cover that while covering the "tax on the tax payment" is why they gave you $18000 based on a 33% tax rate (although you will never actually see it in your check or pocket, only on the tax return.) It's called a gross-up. Increase a benefit to cover the tax on the benefit.