award is for an industrial injury
2007-03-09 12:45:33 · 4 answers · asked by Linda B 1 in Business & Finance ➔ Taxes ➔ United States
Any portion of the compensation that is for lost wages can be taxable based on who paid the compensation
If it is from workers compensation,, no
If it is paid by the employer as sick pay yes
If it is paid from a lawsuit then it is for the portion that compensates for lost wages yes
2007-03-09 12:54:17 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Awards for physical injury or sickness are not taxable. If any portion of the award is flagged for interest, lost wages, or punitive damages, those portions are fully taxable as ordinary income.
2007-03-10 06:52:05 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
money that came from Personal Injury is Not taxable
2007-03-10 00:00:28 · answer #3 · answered by clu25 2 · 0⤊ 0⤋
If it is workmans comp, the answer is no. If it is court awarded, generally not. It depends on how the award was worded.
2007-03-09 20:52:06 · answer #4 · answered by nosouix 2 · 0⤊ 0⤋