Q. If I received a severance from an employer, will the taxes that were withheld at the time I received it be included in the federal tax withholding box?
A. Yes. That is how it is usually done.
Q. I received a severance that was heavily taxed at the time of receiving it, it doesn't seem like the amount that was withheld is included on my W2.
A. Federal income tax withholding is shown in box 2 of the W-2. the wages are in box 1. If box 2 doesn't look right, what about box 1. It is not unusual for the employer to issue a separate W-2 for the severance.
