income






 

Question by  Kason (8)

Is severance pay taxed if you agree to an early retirement?

I agreed because they offered me six months' severance. So will that money be taxed?

 
+7

Answer by  Travis404607 (3916)

Severance pay money is income, so it is typically taxed on both a federal and state level, unless you qualify for some sort of exemption. You can check with the IRS or an accountant if you think you qualify for an exemption.

 
+6

Answer by  JohnHolmes (2660)

Yes this will be taxed but it may not necessarily be taxed by the company you may have to pay it on your own later.

 
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