My company just paid my severance out as a bonus claiming the IRS states its supplemental income. I don't make more than 60k so I was wiped out by Federal Income Tax. I know bonuses are taxed at 22% but did not know Severance was. I can't find any IRS publication stating its taxed at a higher rate, other than that it may push you into a higher tax bracket. Do I have any ground to stand on and push back?

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If you paid in too much, it will come out in the wash at tax time.

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Severance will be taxed at your marginal tax rate, much like the bonus. What changes now it's how much your employer withheld. The 22% is not the actual tax rate, it's an available shortcut to compute withholdings. The employer can also use the more compex but more accurate "aggregate method". In any case if they withheld too much, you'll get your money back once you file your tax return.

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Better not get pushed into the higher tax bracket and Venmo me the money

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Bonuses are taxed at 37%. Not 22%

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Yeah I know. OP is the one who seems to think that severance/bonus/salary is taxed differently.

They may have wrote your severence as a bonus, but they are both taxed at 22%. If you are unhappy with the disclosure, you need to speak with HR. Most likely someone was lazy and typed your severence as bonus. I cannot think of any tax benefits for the company. However it does look better on the financials as a bonus to employees vs. a severence line item.

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Taxation is theft! “Oh you lost your job? Thats too bad. I’ll take 1/4” *rubs nipples * - The IRS probably
Good luck in your future endeavors.

Too bad thats not how most of our tax dollars are used and they are instead wasted on endless wars and pocketed by politician’s cronies in the forms of “social programs” that never see the people who need it most.

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