The National Directory of Certified Public Accountants

Ask A CPA - Miscellaneous Income

Severance Pay

Severance or dismissal pay received upon termination is taxable, even if a signed waiver releasing the employer from future damage claims was given to the employer. Payments made for personal injury damages are non-taxable.

If you need professional help with "Miscellaneous Income" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.