A bill to amend the Internal Revenue Code of 1986 to exclude certain severance payment amounts from income.
The source supplies the latest action, but no lifecycle stage.
Latest action (20 Oct 1998): Read twice and referred to the Committee on Finance.
What this bill does
This bill, S. 2644, proposes to amend the Internal Revenue Code to allow individuals to exclude a limited amount of severance pay from their taxable income. Specifically, it would exclude qualified severance payments up to $5,000 per separation from employment.
To qualify, the severance payment must be made by an employer due to a separation from employment connected to a workforce reduction. Additionally, the individual must not find new employment within six months where their compensation is at least 95% of their previous job's pay. The exclusion would not apply to individuals who receive aggregate payments exceeding $125,000 for a separation.
This bill was introduced in the Senate in October 1998 by Senator Robert Torricelli. It was referred to the Committee on Finance. The bill has not advanced beyond its introduction.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Amends the Internal Revenue Code to exclude from gross income a limited amount of qualified severance pay.
Timeline
20 Oct 1998
Read twice and referred to the Committee on Finance.
Common questions
- What does S. 2644 do?
- This bill, S. 2644, proposes to amend the Internal Revenue Code to allow individuals to exclude a limited amount of severance pay from their taxable income. Specifically, it would exclude qualified severance payments up to $5,000 per separation from employment. To qualify, the severance payment must be made by an employer due to a separation from employment connected to a workforce reduction. Additionally, the individual must not find new employment within six months where their compensation is at least 95% of their previous job's pay. The exclusion would not apply to individuals who receive aggregate payments exceeding $125,000 for a separation. This bill was introduced in the Senate in October 1998 by Senator Robert Torricelli. It was referred to the Committee on Finance. The bill has not advanced beyond its introduction.
- Has S. 2644 become law?
- The source does not supply a confirmed lifecycle stage for S. 2644. Check the latest action and official source below.
- Who sponsored S. 2644?
- S. 2644 was sponsored by Sen. Torricelli, Robert G. [D-NJ] (D-NJ), with 0 cosponsors.
- What's the latest action on S. 2644?
- Read twice and referred to the Committee on Finance. (20 Oct 1998).
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