Set the timing of the severance payment to save on income tax.
Hello,
I am legally insured and received sickness benefit from January to May 31, 2016, in the amount of the maximum rate + EUR 1,700.00 employer contribution to sickness benefit. From June 1 to December 31, 2016, I will receive my salary while on leave amounting to EUR 7,200.00 gross. A termination agreement was agreed upon for December 31, 2016, with a severance payment of EUR 225,000.00 gross. The payment of the severance is currently scheduled for December 15, 2016. Starting from January 1, 2017, I will probably receive the maximum amount of unemployment benefits. No other income is available.
Question: Should I postpone the payment of the severance until 2017 in order to save taxes? Does it make sense to somehow split the payment in order to save on income tax?
