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Subject:  FICA on Severance Pay Date:  10/2/2013  7:08 AM
Author:  TMFPMarti Number:  119241 of 127513

The Supreme Court has agreed to hear a case regarding whether or not severance pay is subject to FICA. The case is United States v Quality Stores. A decision is not anticipated before June 2014.

If you received severance pay in 2010 (the earliest open year) and FICA was withheld you should consider filing a refund claim before 4/15/2014. You might want to wait a couple of months before filing since often the IRS will set up a special internal procedure for holding these claims until the court case is resolved.

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