J hibbets good afternoon! A severance package would be considered taxable and your employer should have withheld federal and state taxes on this payment and you should receive a 2023 W-2 from your. Turbo tax has an excellent program Tax Caster that will allow you to get an estimate of your 2023 taxes . In recommend you use this program to get an idea of what your 2023 taxes will look like. The 2023 updated tax caster program should be available in to use early November 2023. The overall implications of a layoff is that your income in most cases will be less subject to the amount of severance you received.
