I am going to get 6 months severance pay from a recent layoff. My pay will be from Oct 2008 to Mar 2009. This will definitely increase my tax liability for this year. Is there any way that I can pay taxes for the entire severance check next year or for atleast for Jan to Mar 2009 severance next year?
Will I avoid paying taxes this year, if I get severance pay in the form of a check this year but don't cash the check till early next year.