Re: Income Tax help
- From: "Route 101©" <askme@xxxxxx>
- Date: Thu, 21 Dec 2006 10:52:05 -0800
"Joanne" <Joanne@xxxxxxxxxxxxxx> wrote in message
not even as perhaps unreimbursed employee business expense on Schedule A, or
<ankur.k2001@xxxxxxxxx> wrote in message
Until May this year, I was working for a company under a bond
agreement of 75,000 to work for minimum 15months. I decided to leave
the company after serving only for 10 months and thus was required to
pay 75K for breaching the bond agreement.
Since, I had to pay this money from the savings I had made,
shouldn't I get tax rebate on the money which never came to me. Also,
the employer who took 75K would have payed tax on it anyway , so now
two parties have paid income tax on the same money. Isn't this wrong?
It will be great if you can suggest me on this.
Don't take this as advice, only an observation:
The money you earned is income to be reported as such. The money you paid
as a penalty is not deductible, just as a parking ticket would not be
If it's right for you, then it's right, . . . . . for you!!!
if self-employed as a business expense on Schedule C? wondering if it is
considered expense related to taxable employment/business income generation
vs. a personal expense.