You'll need to sign in or create an account to connect with an expert.
If you are unsure about whether the employer included the tax withheld from your severance in box 2 of your W-2---ask the employer. It should be in box 2.
A severance package would be considered taxable, and your employer should have withheld federal and state taxes on this payment (and included this on your W-2).
Q. If I received a severance from an employer, will the taxes that were withheld at the time I received it be included in the federal tax withholding box?
A. Yes. That is how it is usually done.
Q. I received a severance that was heavily taxed at the time of receiving it, it doesn't seem like the amount that was withheld is included on my W2.
A. Federal income tax withholding is shown in box 2 of the W-2. the wages are in box 1. If box 2 doesn't look right, what about box 1. It is not unusual for the employer to issue a separate W-2 for the severance.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
Jackie G
New Member
SethSev
Level 2
mpeter2008
New Member
miraenmatt
New Member
naru_01
Level 1