Being Laidoff and wanting to know if I can get tax exemptoin on retention check

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DavisBrian

Nov 13, 2008, 10:25 AM

I am being laid off, and would like to know if it is possible to get either my severance or retention check tax exempt to payoff big bills?

AtlantaTaxExpert

Nov 13, 2008, 12:04 PM

Sorry, it does not work that way.

Your severance is a lump-sum payment that WILL be subject to tax withholding, probably at 25-to-30%.