PTIN Seal

Miscellaneous Income

  1. PTINdirectory
  2. Tax Knowledge Database
  3. Miscellaneous Income
  4. Severance pay

Severance pay

Severance or dismissal pay received upon termination is taxable, even if a signed waiver releasing the employer from future damage claims was given to the employer. Payments made for personal injury damages are non-taxable.

Need Professional Help?

If you need help with "Miscellaneous Income" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.