Severance Income: Is there any rule for deferring some of the extenuating circumstance income or splitting it up over several years?

eniargy · ‎June 6, 2019

In November I received a 6 month severance payment, minus about 36% for taxes. This skyrocketed the amount of my wages by 58% over last year. I paid 72% more in federal taxes however I am getting back the same amount I got last year (not much). I cannot contribute more to an IRA to shelter any of it. Is there anyway rule for deferring some of the extenuating circumstance income or splitting it up over several years?

Hal_Al · ‎June 6, 2019

No. There used to be a provision for "income averaging" but not currently.

Sometime. you can get the employer to spread it over two years, but it's too late for that, in your case.

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Severance Income: Is there any rule for deferring some of the extenuating circumstance income or splitting it up over several years?

Retirement tax questions