For those that left in 12/28, how bad did you get taxed on your severance check. Was it the 22%?
7 replies (most recent on top)
I ran exempt...got it all with exception of social security....Medicare...etc.
My CPA recommended paying quarterly taxes throughout 2019 and to pay 110% of 2018 tax obligation to avoid under payment penalty which would be about 900 bucks.
Big chunk of what I owe (40k) is in high yield savings earning 90 bucks a month...compounding
By April of 2020 is when total obligation for 2019 sev payout is due...no way I was lending my money to the government for 0 yields
I live in Maryland. I was taxed a total of 29%. That includes federal fica and SS. MD is a state that doesn’t have a supplental tax rate. And we got our deposit 3 weeks after the separation. It was on a the 18th a week that we wouldn’t have gotten paid.
FYI if you go exempt you can hold on to your money for gains.. and pay the gov't later. The Dec folks got their big check maybe 3 weeks after they left. Vacation check came 1 week after.
How long did it take to get the severance check?
Thanks! I should have specified I'm in NJ, but thank you both for the feedback!
In total, I kept 62%, that's fed, state, ssi, medicare. I live in NY married 0 dep. Fed alone took exactly 22%.
Federal only about 30% (married filing jointly w/ 0 dependents). That included VSP and STI as they were in the same check. I do not have a state or local taxes.