Can anyone provide an approximate total tax percentage on severance payout?
My severance + STI will be appx $107,000 with another $10,000 in accrued vacation.
I'm hearing 40%....🙄
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35.5% on my unused vacation payout. Assuming similar for the severance check.
Turn off your taxes, pay next year.
OGY.... I hope that statement was meant for the 10% of Verizon workers (not counting exec level folks) as people that make significant money have what is called tax shelter that generates massive write-offs thus significantly lowering their actual taxes paid.... Economics 101
And now you know what the top 10% pay. The next time people say the "rich" are not paying enough, it's because they don't know what people pay.
Around 40%, but if you have itemized deductions and a good tax person, you will get a lot of it back next year.
Severance has federal tax taken at 25% (supplemental rate) Add on 7%+ for SS/Medicare and then any state taxes, you will get near the 40% in many states
Pretty close to 40%..... You need to remember it is not only fed and state taking their part but also you will max out on social security tax around 7800 a year now and pay the Medicare tax as well. Just looks bad because it is all paid at once.
Keep in mind, if you decide to keep working and get a new job, you may want to consider having additional fed taxes withheld from new job for rest of this tax year.
Your vacation payout will be separate i believe as I received that first and yes it will be taxed similar to STI 40% or so..
38.8 federal, plus state at max rate, 11% in CA
U had a 107 k severance ? What job did u have. It can be vz retail lol
And yes i would assume around 40 percent like commission