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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13332
Experience:  15years with H & R Block. Divisional leader, Instructor
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I just received my severance pay in AZ & I was wondering what

Customer Question

I just received my severance pay in AZ & I was wondering what our tax rate is?
Submitted: 1 year ago.
Category: Tax
Expert:  ShawnA replied 1 year ago.
Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. Retired CPA
That depends on several factors. Earnings this year in addition to this severance pay, earnings expected till year end.
If you know what you have earned so far send an offer.this year and what the severance pay is I can start to determine how much you will owe.
There are also several other factors that effect the rate. Marital status, dependents, etc.
If you would like a telephone call to get an exact number please let me know and I will
Expert:  Robin D. replied 1 year ago.
Hello and thanks for trusting me to help you today. I am a tax adviser with over 20 years of experience.
Severance pay is taxed for withholding at either your regular withholding allowances or at the higher rate ( Supplemental rate, like Bonuses)of 25% flat rate withholding. This rate can be used for supplemental wages paid to an employee that do not exceed $1,000,000 during the calendar year.
Your severance pay will be taxed at your regular rate of tax. It is added to your income, your filing status and total income will determine the rate.
If you are single,
For earnings between $0.00 and $10,000, you'll pay 2.59%
For earnings between $10,000.00 and $25,000, you'll pay 2.88% plus $259.00
For earnings between $25,000.00 and $50,000, you'll pay 3.36% plus $691.00
For earnings between $50,000.00 and $150,000, you'll pay 4.24% plus $1,531.00
For earnings over $150,000.00, you'll pay 4.54% plus $5,771.00
Married Filing Joint:
For earnings between $0.00 and $20,000, you'll pay 2.59%
For earnings between $20,000.00 and $50,000, you'll pay 2.88% plus $518.00
For earnings between $50,000.00 and $100,000, you'll pay 3.36% plus $1,382.00
For earnings between $100,000.00 and $300,000, you'll pay 4.24% plus $3,062.00
For earnings over $300,000.00, you'll pay 4.54% plus $11,542.00
For federal the rate of tax depends on the same as the state but can be higher.
10% -39.6%