Do I have to pay tax on my severance pay?

Amounts you receive as severance pay are taxable and must be reported on your tax return. A lump sum payment for cancellation of your employment contract is taxable income in the tax year you receive it and must be reported with your other salaries and wages on your tax return.
 Related tax information about severance pay
Are lump sum payments for cancellation of employment taxable?
Are back pay awards taxable?
Are wages and salaries taxable?
Income Related Questions and Answers
IRS publications about severance pay:
For additional tax information about severance pay, wages, salaries, and other earnings, refer to Chapter 6 of IRS Publication 17, Your Federal Income Tax.
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