Severance is a substitute for income and, as such, is taxable. The relocation payment is more complex in that the the amount given to you may be taxable, but the monies spent on relocation is tax deductible. One of my partners is both a CPA and a tax attorney. I did speak with him this morning. We can get more detailed answers if you need them. Ed Dimon, Esq. 732-797-1600 ext 235
Answered on Jul 08th, 2020 at 8:31 AM