Taxation of Emotional Distress Payments

By | August 4th, 2011|Categories: Potpourri of Tax Topics|Tags: , |

Amounts paid to a person for emotional distress are considered taxable income, as a taxpayer learned in Tax Court today (Thursday).  The taxpayer, a Julie McGowen, suffered emotional distress at a job she was working at in California.  As the Tax Court ruling explains, one of Ms. McGowen's co-workers was apparently not pleasant to work with: From [...]