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Submitted By: someone
Answered: January 16, 2019 8:54 pm
Answered: January 16, 2019 8:54 pm
My company is closing and I’m going to receive a large amount of severance pay. When is this taxable?
Severance pay is taxable in the year in which it is received. If it’s received in a lump sum, then it’s taxable in one year. If it’s spread over two or more years, then the portion received in each year is taxable in that year.
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Tax Glossary
Partnership
An unincorporated business or income-producing entity organized by two or more persons. A partnership is not subject to tax but passes through to the partners all income, deductions, and credits, according to the terms of the partnership agreement.
