Severance pay (abfindung) payout 2025 or 2026 tax benefit?
Posted: Sun May 11, 2025 3:42 pm
So I have been laid off and given an severance pay. My end working day is November 25 and severance payout is with last salary which is November as well which means 11 months salary, severance pay and one month unemployed money for 2025 which puts me in high tax bracket with tax class 1 (single).
I have an option to receive the severance pay next year Jan 26 and if I do not get any job in 2026 then until November 26 (11 months) of unemployment money as well However I am not sure if the severance payout is in jan26, probably I won't get first 3 months of unemployment money.
Can anybody advise if it makes sense of receive the severance payout in 2025 or 2026 from tax point of view? any suggestions?
I have an option to receive the severance pay next year Jan 26 and if I do not get any job in 2026 then until November 26 (11 months) of unemployment money as well However I am not sure if the severance payout is in jan26, probably I won't get first 3 months of unemployment money.
Can anybody advise if it makes sense of receive the severance payout in 2025 or 2026 from tax point of view? any suggestions?