Can I defer depositing severance pay check to next year?

Forum|Forum|6 years ago
August 10, 2019
3 replies
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I am just laid off and will get severance pay(lump) check in October 2019.

I don't think I can find a new job in 2020, can I deposit my severance pay check in Jan 2020 so that I can save money for 2019 tax?

Critter

Employee

Sorry ... your employer will add that to the 2019 W2 issued in January ... there is no way to "defer" it by not cashing it until 2020.

VolvoGirl

Employee

Ask them not to pay you until next year? They could earn interest on it til then. Or do you have a 401K plan you could put most or all of it in? That's what I did. Put it all towards my 401K.

Carl11_2

Employee

You can cash/deposit the check any time you want. But it does not change the fact that you were paid the money in 2019 and it will be included as a part of your 2019 income. Basically, you will have direct control of that money the day you get the check. Therefore, no matter when you cash it, that money is included in your 2019 income. The only thing you can do to change that, is to tell the employer to keep the severance pay because you don't want it.

A

Anonymous

even asking your ex-employer not to issue check until 2020 will not work since you are the one making the decision as to when to get paid