Thank you so much for your detailed response.
The individual is single, and all work was performed in the USA. He’s an American citizen (although he was born in France to a French mother and American father). He files a US tax return, and no taxes have been withheld from any of the payments he received. He received u employment but did not pay any taxes on it in France but will include it on his 1040. I think it’s important to note he’s received no tax forms from either the French government or the company that laid him off, just letters.
This is what was communicated to me….
“Following the purchase of the media group by an outside entity that could not guarantee amount of work I would be granted, I was given the option to be laid off and my last day as an independent freelance journalist by XYZ Company was Feb 28th 2023.
Because I had been working regularly for the past 21 year and opted to be paid in salary with contributions to unemployment benefits etc. I was entitled to severance benefits.
I separated this big chunk of money received as severance in the xl spreadsheet. As noted, a big part of this severance package is considered NOT taxable by the French authorities. Whether The IRS allows me to deduct that portion is another story...”
Thanks again!
