Settlement monies from physical and mental abuse/harrassment at work?
In a suit-are they taxable? And-sorry but what are punitive damages? What are these damages or the settlement monies called? Emotional distress? Thanks! This is a new language in a not so fun situation!
Answers:
Damages come in 2 types. Compensatory damages are intended to compensate you for actual damages. Punitive damages are any additional amount intended to punish the person/company responsible. Punitive damages are ALWAYS taxable. Compensatory damages may be taxable or not, depending on the type. As a rule, if you would have been taxed for what they replace (ex. lost wages), they are taxable. If you would not pay tax for what they replace (ex. lost arm or leg), they are not taxable. You should have a tax attorney review your award to advise you properly.
No, they aren't. Settlements (What they are called) and inheiritances are almost always tax free.
Think of punitives as, " Money damages beyond basic compensation to "punish" for the wrong that was done.
Emotional distress is the emotional hardship caused by a situation. They are harassing you, so you had insomnia or a nervous breakdown. These are symptoms of emotional distress.
It makes me sick how folks want to sue for anything and everything. Using the law to rob people is worse than being a bank robber.
If you are eavesdroping on someone and they tell a joke that you don't like that is not harrassment. You don't have to like everything everyone says. We are supposed to have freedom of speech in this country. I'm sorry but the liberal judges have this country messed up.
Emotional distress. Pleeeease.
Grow up and grow some skin America. Our rugged pioneer ancestors would be ashamed.
no they are not taxable as it is compensation for a loss just like if your house burns and the insurance co gives you the insured amount , it is compensation for a loss therefore not taxable,in this instance it is compensation for a injury, physical or mental,
The Answers post by the user, for information only, FreeLawAnswer does not guarantee the right.
Answer question:
More Law Questions and Answers:
Answers:
Damages come in 2 types. Compensatory damages are intended to compensate you for actual damages. Punitive damages are any additional amount intended to punish the person/company responsible. Punitive damages are ALWAYS taxable. Compensatory damages may be taxable or not, depending on the type. As a rule, if you would have been taxed for what they replace (ex. lost wages), they are taxable. If you would not pay tax for what they replace (ex. lost arm or leg), they are not taxable. You should have a tax attorney review your award to advise you properly.
No, they aren't. Settlements (What they are called) and inheiritances are almost always tax free.
Think of punitives as, " Money damages beyond basic compensation to "punish" for the wrong that was done.
Emotional distress is the emotional hardship caused by a situation. They are harassing you, so you had insomnia or a nervous breakdown. These are symptoms of emotional distress.
It makes me sick how folks want to sue for anything and everything. Using the law to rob people is worse than being a bank robber.
If you are eavesdroping on someone and they tell a joke that you don't like that is not harrassment. You don't have to like everything everyone says. We are supposed to have freedom of speech in this country. I'm sorry but the liberal judges have this country messed up.
Emotional distress. Pleeeease.
Grow up and grow some skin America. Our rugged pioneer ancestors would be ashamed.
no they are not taxable as it is compensation for a loss just like if your house burns and the insurance co gives you the insured amount , it is compensation for a loss therefore not taxable,in this instance it is compensation for a injury, physical or mental,
The Answers post by the user, for information only, FreeLawAnswer does not guarantee the right.
Answer question:
More Law Questions and Answers:
- Is it necessary for innocents to sometimes be punished to keep justice?
- Can you copyright poetry. How to protect Intel property.?
- Anybody who noes a little about the legal system please help?
- Just curious, what happened to rule of law?
- Can a lawyer help?
- Can you tell me some about Hitler's services to humanity as his good side(ok, we know about the other side) ?
- Am i entitled to representation bt ACAS and will they charge me a fee?
- Who would you put on death row? who would be on your hit list?
- How do I get my stuff back?