New call for hedonic damages? Emotional distress damages can not be taxed
From the THE ASSOCIATED PRESS
Tax code on emotional damages tossed
WASHINGTON -- The federal government may not tax the money plaintiffs receive as compensation for emotional distress and other intangible injuries, a federal appeals court said Tuesday.... it could mean the end of tax bills following a variety of trials, from civil rights disputes to employment discrimination cases.
The court ruled that such awards, like the$70,000 judgment for emotional distress and injury to reputation following a 1994 whistleblower case against the New York Air National Guard that lead to the decision, were not income but "compensation for the loss of a personal attribute." In that sense, they are akin to awards for physical injuries, which are tax exempt, the court said.
Tax code on emotional damages tossed
WASHINGTON -- The federal government may not tax the money plaintiffs receive as compensation for emotional distress and other intangible injuries, a federal appeals court said Tuesday.... it could mean the end of tax bills following a variety of trials, from civil rights disputes to employment discrimination cases.
The court ruled that such awards, like the$70,000 judgment for emotional distress and injury to reputation following a 1994 whistleblower case against the New York Air National Guard that lead to the decision, were not income but "compensation for the loss of a personal attribute." In that sense, they are akin to awards for physical injuries, which are tax exempt, the court said.
Labels: courts on experts
posted by The Experts @ 7:49 PM
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