Just got my taxes done. Even with RJ taking 20% out of my severance I ended up owing money. Many thought the severance was fair some don't realize that with the severance dollars applying to 2020 income many of us were pushed into a higher tax bracket. I did everything I could including maxing out 401K and HSA but it still hurt. Just thought I would share. Oh and I want to thank democrats for allowing me to not only collect state unemployment but also federal unemployment which is a cushion adding to me collecting social security and getting the stimulus monies. I paid into this system for 40 years and I will grab everything offered to me.
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Yep..me too...thanks RJ...thank you for all the lying and pretending to care. I was stuck in a no win situation of no chance of competing with off shore employees who actually get trained. Lets just hope that the fact we had to be happy about the fact we were let go for the reason of COVID will bite them.
Don’t forget to thank Republicans for enhanced unemployment benefits too.
I agree with the original poster. Get everything you are entitled to.
Concerning the 20% IRS rule for federal withholding of bonuses, at least for me, the annual bonus wasn't that much that I would notice. This lump sum severance was. I, too, will pay taxes on April 15, but I already invested my severance. IRS gave me a 0% loan for six months.
You were employed by a leading financial services company and weren't aware of income tax implications on your severance? I hope you weren't advising people on their financial and tax situations. Unbelievable.