The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/fica-on-severance-pay-30898261.aspx

Subject:  FICA on Severance Pay Date:  10/2/2013  7:08 AM
Author:  TMFPMarti Number:  119241 of 121599

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.

Phil
Rule Your Retirement Home Fool
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us