TomK2023
Expert Alumni

Get your taxes done using TurboTax

Yes, enter your W-2 as shown.  Severance pay is taxable, just like regular wage or salary income, in the year of payment. Like regular income, federal and state taxes on severance pay are usually withheld by the employer.

 

You can leave your job title the same as when you were employed (it is used for statistical purposes by the IRS).

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