It depends upon whether or not any deductions were withheld from the severance pay.. Usually standard deductions are withheld.
The only thing that would effect the tax rate would be if the severance pay raised your total for the year into a higher bracket. If your a wall street mogul with a golden parachute it probably would. If your a working stiff like the rest of us it probably won't. It should be taxed as regular income.
The only thing that would effect the tax rate would be if the severance pay raised your total for the year into a higher bracket. If your a wall street mogul with a golden parachute it probably would. If your a working stiff like the rest of us it probably won't. It should be taxed as regular income.
