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Any excessive withholding will come back as refund.

The issue really is what your complete tax scenario is for this year and whether you need the money now or not.

• For EER, you can choose to have your severance packet and bonus go into your retirement funds and therefore defer the taxes, so your income is really 6 months for this year, plus FTO, plus passive earnings, etc. It is most likely that your earnings this year will be low compared to prior years, therefore more chance to get more money back.

• For WFR->EER, on the other hand, they have received severance packet in a lump sum therefore it is taxable, in addition to whatever income they made for the year. So they may get a big hit as a result.

• For WFR, the situation is same as for WFR->EER.

–Mabel Esteves, March 2007

If you can, push exercising your options and shares into the next year, especially if you know you will have less income (due to unemployment, etc).

Please be aware that if you apply and receive unemployment benefits, this is also a federal taxable event and must be reported. Check your state unemployment website to check on the time table for applying. In CA, when you apply for unemployment in April 07, they use the income earned (W2s) for the January - December 2006 range to calculate your benefits.

If you were WFR'd in October/November 2007, you should check to see if you can push your application to January 2008.

–Mabel Esteves, October 2007