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taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 391
Experience:  Licensed CPA, MA, MST with 29 year's experience. Teach Accounting and Tax courses at Masters level.
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Severance pay or settlement payment for termination . How much

Resolved Question:

Severance pay or settlement payment for termination . How much will I be taxed in Texas?
Submitted: 11 months ago.
Category: Tax
Expert:  taxmanrog replied 11 months ago.

Welcome to Just Answers! Thank you for giving me the opportunity to assist you! I will do my best to help!

 

For Federal tax purposes, severance pay and settlement compensation are taxable. Payments for any accumulated vacation or sick time are also taxable. You should ensure that enough taxes are withheld from these payments. These would be taxed in the same manner as your other wages, simply added to Line 7 on the Form 1040. The actual amount of tax you pay would depend on your other income. The rates range from 10% up to 39.6%, depending on your filing status and other income and deductions are.

 

The good news is that because you live in Texas, there is no state income tax! So the only tax you pay would be Federal.

 

You can go to several different websites to estimate what your tax liability. This one is a good and simple one. http://www.calcxml.com/calculators/federal-income-tax-calculator

 

I hope that this has answered your question! If you have any more, please let me know and I will be happy to answer them! If you have found my answer helpful, please rate me highly! I would appreciate that!

 

Again, thanks! Have a great weekend!

 

Roger

 

 

In Texas, there is no state tax, so there

taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 391
Experience: Licensed CPA, MA, MST with 29 year's experience. Teach Accounting and Tax courses at Masters level.
taxmanrog and 4 other Tax Specialists are ready to help you
Customer: replied 11 months ago.

Will I be taxed Fica and Medicare?

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