• Understanding Taxes on Annual Leave Payout for Federal Retirees: Myth vs. Reality

  • Jul 24 2024
  • Duración: 5 m
  • Podcast

Understanding Taxes on Annual Leave Payout for Federal Retirees: Myth vs. Reality Por arte de portada

Understanding Taxes on Annual Leave Payout for Federal Retirees: Myth vs. Reality

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  • Hello PYFR team! I love the podcast and appreciate it and all the resources you offer. My question is about taxes on the pay-out of annual leave for retirees. I assumed it would be considered income just like salary and would be taxed at whatever rate my income met for that year. But, a colleague who is planning to retire in a few months is planning to use all his leave now because he thinks the payout will be treated like a bonus and taxed at a higher rate. And, are bonuses even taxed a higher rate, or is only the amount withheld higher? Thanks so much! - Kevin

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