How do I enter a one-time taxable payment such as severance?
Where to find it: INCOMES → Add Income → Other Income
Add the payment in INCOMES and choose the source that matches its tax treatment. For Other Income, select the appropriate tax treatment in its form.
Use the same start and end date to make it a lump sum. Enter the full gross payment. For example, a single $25,000 payment is entered as $25,000 with identical dates, rather than as a monthly or prorated income.
For a bonus paid in the year you retire, keep the recurring salary at its regular annual rate and add the bonus as a separate one-time income on its payment date. Identical start and end dates prevent the lump sum itself from being prorated over the working part of that year.
If the payment starts in the future and its amount is already fixed for that date, use the FUTURE currency field. If some components have different tax treatment, enter them separately so TIME MACHINE can distinguish them.