Income Taxes will be deducted when you get the PTO payout from your employer.
At the end of the year you will owe taxes for the interest/dividends if you normally get taxed.
Once you have everything paid out you can run a quick estimate at Dinkytown or another calculator to see where you stand taxwise.
If I remember correctly I got taxed at a higher rate by my employer on my severance payout so I got a nice chunk back at year end.
