Laid off in 2021 but paid severance in 2022

Oconn22 · ‎February 3, 2023

My last day at a company was December 31, 2021. I received additional severance payments in January 2022. Since I was no longer an employee in 2022, how will that money show up? Should I expect another W2? I haven't yet received any documents from that employer regarding the 2022 payments.

GeorgeM777 · ‎February 3, 2023

Severance pay is taxable in the year that you receive it. Thus, because you received additional severance payments in January 2022, that income should be reported on your tax return for 2022. Your former employer should report your income on a W-2 and include all the applicable withholding. You may need to contact them to determine when you will receive your W-2.

The above information is consistent with IRS Publication 4128 that relates to the tax impact of job losses. A link to this publication is below.

Tax Impact of Job Loss

@Oconn22

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GeorgeM777 · ‎February 3, 2023

Severance pay is taxable in the year that you receive it. Thus, because you received additional severance payments in January 2022, that income should be reported on your tax return for 2022. Your former employer should report your income on a W-2 and include all the applicable withholding. You may need to contact them to determine when you will receive your W-2.

The above information is consistent with IRS Publication 4128 that relates to the tax impact of job losses. A link to this publication is below.

Tax Impact of Job Loss

@Oconn22

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"