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LastoftheGreatOnes OP t1_jebdlea wrote

Reply to comment by Ragnarotico in I was laid off - what to do with severance, 401k, etc? by LastoftheGreatOnes

Why would my severence of 40k be taxes at 50%? This is higher than a bonus would be of that amount.

Everything I read is this is simply taxable at the rate my paycheck would have been

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Ragnarotico t1_jebdy3r wrote

I had also assumed the same thing. Mine was taxed at a rate of pretty much 49%. I might get it back at tax time, might not. Something to do with supplemental wages or what not. If you end up with more than 50%, consider it a bonus.

But do the math assuming you'll end up with half.

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LastoftheGreatOnes OP t1_jebe9v8 wrote

Yeah, my estimate is assuming that but I was trying to be conservative. I have it around - 20k wages, 12k from RSUs, 7k that is netted up to cover tax comes out to around 40k.

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Enigma7ic t1_jebghk8 wrote

My severance last year was also taxed higher than my normal paycheck (43% vs 27%). Not sure why, but I had no say in the matter. I did get most of that money back when I filed my tax return last month though

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Cautious_General_177 t1_jebjfhx wrote

They’ll probably withhold taxes as a bonus, so you’ll have less available now, but you should get the difference back next year.

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