Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
eniargy
New Member

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

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?


1 Best answer

Accepted Solutions
Hal_Al
Level 15

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

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.

View solution in original post

1 Reply
Hal_Al
Level 15

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

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.

Privacy Settings
v