Taxed Severence Pay Refund Interest is taxable income

Not sure were to post this but figured here is good.

Anyone who is going through recovering a portion of their Severence Pay that was taxed when they were discharged, you will receive interest from the IRS on that portion of you severance pay. Awesome right, yea but now I need to redo my taxes cause that interest earned money is considered taxable income thanks IRS would have been nice to have that letter last week before I sent my taxes off.

O well.
 
Not sure were to post this but figured here is good.
Anyone who is going through recovering a portion of their Severence Pay that was taxed when they were discharged, you will receive interest from the IRS on that portion of you severance pay. Awesome right, yea but now I need to redo my taxes cause that interest earned money is considered taxable income thanks IRS would have been nice to have that letter last week before I...

If the interest was paid in 2018, then it is taxable for that calendar year.

If it was paid (made available) earlier this month, then there is no neèd to amend your return; it should be reported on your 2019 calendar year return.

I suspect you have a 1099 that shows you have taxable interest for 2018.

During 2018, I received interest on a new account with a bank. I expected to receive a 1099 because interest is taxable.

Good luck,
Ron
 
Yea I received it last year didn't think anything of it, so from 2005 till last year just over a 1000 in interest. Did my taxes for this year already and sent them off, then got that in the mail yesterday. No worries I'll wait till I get my return back and to an amended return later this year.

Just figured I would give everyone else a heads up so they keep that in mind.
 
I think your info will be helpful...good job.

Ron
 
Hopefully I am sure there probably a few that will get a larger chunk back from the IRS and a larger portion of Interest.

My rule of thumb is always 30% tax of what ever it is, that's usually on the safe side for me.
 
Yea I received it last year didn't think anything of it, so from 2005 till last year just over a 1000 in interest. Did my taxes for this year already and sent them off, then got that in the mail yesterday. No worries I'll wait till I get my return back and to an amended return later this year.

Just figured I would give everyone else a heads up so they keep that in mind.

It's not really that big of a deal, may change your tax bracket, may not. No need to file an amended return. If you get a bill in the mail, just pay it.
 
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