Originally Posted by
Celeste
Kind of off topic... What's the difference in taxes between loan reimbursement and a signing bonus?
A lot of bonus money is taxed at 40-50%... if loan reimbursement is tax free or a lower tax rate, that would be huge... besides, the quicker payout to avoid accruing interest.
I don't know anything about loan reimbursement but even bonus money you get back some of that initial tax later. They tax it initially at a higher rate, but at the end of the year it all works out, your total income including the bonus is just taxed at whatever rates you are at, so you will get a lot of that bonus money back they over taxed you on.