Originally Posted by
fdx727pilot
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.
I realize how it works. Was just just saying that if they give you an extra 6k to cover the taxes on the 12k you got already who pays the taxes on the 6k gross up?
Kinda like if you drop an egg and it continues to fall half way to the ground does it ever hit the ground? or something like that!
Some humor..
Past...