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The government always gets its cut. I mean how else are all the entitlement programs going to get paid for?
Dont know the answer but sorry to hear that.
I really doubt it though, even ilegal activities income is taxed, cannot imagine that severance would be exempt
There are only 2 things certain in life - taxes and death
The advantage of not being a W2. Everything collapses if high paying W2 disappears
A severance check is taxable income. Though you may get a bigger refund end of year, if your withholding rate is on an income level higher than what you end up earning due to the unemployment.
But when you retire, doesn’t more taxes you ended up paying allow you to gain more money back in terms of social security, etc.?