LayoffsMay 6, 2023
NewpseS00

Taxes withheld from severance check can we get it back?

Totally did not see this coming but severance is taxed as supplemental wage. I paid twice as much federal taxes on my lum sum which really sucked. Is it possible to some back as tax refund? Googled but can't find a straightforward answer.

Morgan Stanley ciao yeah May 6, 2023

It’s income the same as any other. If your overall withholding was more than you owe, you’ll get the difference back when you file.

Investment Bank Glinda May 6, 2023

You will get the money back, as a tax refund, when you file next year's return. You can also reduce withholding on your new job.

Microsoft evID04 May 6, 2023

You can adjust w4 in the new place to account for overpaid taxes if you want to get your money back earlier than next time you file tax return. It’s possible, but would require some (for someone it’s non trivial for others it’s pretty simple) math.