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arieza23
New Member

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!

 
5 Replies
NicoleR
New Member

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!

Is this military severance pay from a medical retirement?  If so, do you have your VA rating yet?
arieza23
New Member

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!

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

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!

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
New Member

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!

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

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!

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>
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