How do i handle severance pay reported on my w2. my income went sky high because of severance pay which is taxed. a lot from my severance pay went to my taxes. help!

[NicoleR]

Is this military severance pay from a medical retirement?  If so, do you have your VA rating yet?

[arieza23]

thank youit is not a severance pay from a medical retirement. my former employer died and i got a severance pay.

[Josh_R]

If you received severance pay, including payment for unused vacation or sick days, those amounts are fully taxable as income. Those amounts will be included on the W-2 form you receive from your former employer. They are not tax deductible.

[arieza23]

Do i need to report what is my regular earnings from what i have received as a severance pay?

[Josh_R]

All of your income from that employer should be on your W2 and you report that W2 as a single W2 for the year.  You can find more info on job separation in this IRS publication:  <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p4128.pdf">https://www.irs.gov/pub/irs-pdf/p4128.pdf</a>