Topic: Tax question

[MarshallGrad]

Many of you are commenting and I very much appreciate that......however please comment on my question.....it is quite different than many of the responses.

In general, you have to have paid taxes on the income to take the write off on the income. You did not pay taxes so there is nothing to write off. Yours is not a problem resolved by the tax code, it is one normally settled through litigation. Obviously the Chapter 11 filing makes that option unlikely.

You deserve justice, but in this case there is no way to get recourse through the tax code, since the "income" was never subject to tax nor was any tax paid.

[Always THE HERD]

In general, you have to have paid taxes on the income to take the write off on the income. You did not pay taxes so there is nothing to write off. Yours is not a problem resolved by the tax code, it is one normally settled through litigation. Obviously the Chapter 11 filing makes that option unlikely.

You deserve justice, but in this case there is no way to get recourse through the tax code, since the "income" was never subject to tax nor was any tax paid.

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But didn't I pay taxes on it while I was working? The vacation "with pay" was a benefit promised. And by not taking it (actually not allowed to take it unless my supervisor approved and he always said there was too much going on at the time although I was able to take probably 75% of the other vacation offered) I have this banked vacation......so I still feel like this was a monetary loss to me of approx. $26,000 although the bankruptcy court aproved approx. 1-2% award.

[Flat Tire 2]

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But didn't I pay taxes on it while I was working? The vacation "with pay" was a benefit promised. And by not taking it (actually not allowed to take it unless my supervisor approved and he always said there was too much going on at the time although I was able to take probably 75% of the other vacation offered) I have this banked vacation......so I still feel like this was a monetary loss to me of approx. $26,000 although the bankruptcy court aproved approx. 1-2% award.

You didn't pay taxes on you vacation, it was not income (check your W-2). I would suggest you seek the help of a professional (be ready to pay for services) to discuss the matter. No offense, but asking legal or financial questions on a message board is not the best way to handle your problem.JMHO.

[MarshallGrad]

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But didn't I pay taxes on it while I was working?

Let's say you make $10 and hour, work 40 hours a week, and get paid every two weeks. You also accrue 10 hours of vacation every two weeks (every pay period). Your gross pay is $10 hr x 40 hours per week x 2 weeks per pay period = $800 per pay period. Your company deducts federal and state taxes from your $800 and you clear $700.

You are not taxed on $800 + another $100 worth of accrued vacation ($900). You are only taxed on the wages you are paid - $800. No taxes were paid for any vacation you accrue only for the hours you worked. However, if you would have been able to take those hours, they would have then been taxed at the time you were paid for the.

Yes, you deserved those hours if your company had a policy that stated you were due them. But you were never taxed on any of it and the courts screwed you over when the company filed Chapter 11.