Our offices will be closed at noon on Wednesday, December 24th, and will reopen on Monday, December 29th, at 9am.
Learn moreDamages for Emotional Distress are Taxable
The tax court confirms that damages received for emotional distress are taxable. A woman claimed she was retaliated against by her former employer because she requested medical accommodations for an earlier workplace injury. She filed a discrimination lawsuit and a judge awarded her damages for emotional distress. She claimed her emotional trauma was related to a previous physical injury so the awarded amount was tax-free, but the courts ruled it was indeed taxable.