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

[eniargy]

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 · Accepted solution]

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.