Do I have to pay tax on my severance pay?
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| 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. |
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Related tax
information about severance pay |
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Are lump sum payments for cancellation
of employment taxable?
Are back pay awards taxable?
Are wages and salaries taxable?
Income Related Questions and Answers |
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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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Ask Julian Block your IRS and tax questions! |
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If you can't find the answer to your IRS or tax question in our
web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax
Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine. To
call Julian for a tax consultation click
here. |
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