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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 999
Experience:  Certified Public Accountant
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Regarding a severance payout. If I exercise my 45 day right

Customer Question

regarding a severance payout. If I exercise my 45 day right to review the severance and that moves me into 2017 before i agree and sign it will the taxes on the severance be for 2016 or 2017
JA: The accountant will know how to help. Is there anything else the accountant should be aware of?
Customer: yes I am 49 years old
Submitted: 24 days ago.
Category: Tax
Expert:  Mark Taylor replied 24 days ago.

Hi, my name is Mark. I will be happy to help you with your questions. Please give me a moment to prepare your response.

Expert:  Mark Taylor replied 24 days ago.

The income would be recognized when you have a legal right to it. If you exercise your right to review the severance, I am assuming that you will not be paid until this review period is over. Is this correct?

Customer: replied 24 days ago.
not sure but i would assume they will not pay me until i sign agreement and 45 days will put me into 2017
Expert:  Mark Taylor replied 24 days ago.

If you receive the money in 2017, it would be taxable in 2017.

Expert:  Mark Taylor replied 24 days ago.

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