Taxation of Redundancy Payment

[Ryan]

I’m wondering how this works?
I’ve calculated approx €9k of my severance package is taxable but is it seen as income for that month in which case I would pay 40% tax on it?
Do I have to wait until the end of the year to reclaim any overpayment, I very much suspect if it was taxed at 40% there would be an overpayment

 

[ClubMan]

Have you read these already?

Taxation of lump sum payments

Lump sum payments in compensation for loss of employment are subject to tax. How is tax calculated and what are your entitlements?

www.citizensinformation.ie

Lump sum payments

This page explains lump sum payments

www.revenue.ie

There are also some existing threads on this topic that you should be able to find using the search facility.