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What is the federal income tax rate for a severance package?

April 26, 2017federal income tax package rate severance

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What is the federal income tax rate for a severance package?

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Answer by whitekeys (112) It might be taxed as a bonus in the short term (which is a very high rate, I think 39% or something obscene), but when you do your taxes for the year, it will be taxed at your regular rate, assuming it doesn’t put you into a higher bracket.