Hello,
I may have a good problem with my income this year. I was laid off from my work due to restructuring but received a good severance package. On top of that I received my final check and vacation payoff, which was a good amount as well because I had many vacation days accumulated. I was fortunate to find another job immediately that pays even better than the previous one. According to my calculations, I may be pushed into the top tax brackets this year. I tried to mitigate this by maxing out my 401(k) contribution but I still think I'm going to be in a top bracket. I am a single tax filer and I filled the W-4 at my new job as such, which is just checking a box without entering any other information.
Is there something I can do to improve my tax situation, either on my W-4 or elsewhere?
