You may deduct up to $35,000 of any severance wages you received as a result
of your permanent involuntary termination from employment through no fault of
your own. The severance wages deducted as a result of the same termination may
not exceed $35,000 for all taxable years in which the wages were received. "Stay
on pay" does not qualify for the deduction.
The severance pay which qualifies for this deduction is limited to the
amount of severance pay included in your federal adjusted gross income or $35,000,
whichever is less.
Enter this deduction on line 43 on page 3 of your Form D-400. This
amount will become part of the total line 9 amount on page 1 of
your Form D-400.
Last modified on:
01/03/13 03:39:47 PM.