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!
2007-08-03 12:55:59 · 4 answers · asked by ARTmom 7 in Politics & Government ➔ Law & Ethics
This is a suit against a former manager and the company my family member was employeed with-due to the fact that they knew and did nothing-and yes we have proof of all but who knows with the lawyers?! They have now offered mitigation with us so I guess we are headed somewhere....
2007-08-03 12:58:18 · update #1
Just a note to Robert R and those who might think that having been hit in the balls,thrown over a couch,had your job constantly threatened,cursed at and shown a trunk of guns with 300 rounds of hollow point bullets is just a wish to get money-I hate those who sue for nothing too-this was not that. It was a group of people physcically hurt and harrassed and threatened by an ****** for a number of years with knowledge by the company of his tactics-thats not nothing-don't assume you know me or my situation because I was trying to be discrete-Thanks for your other answers too-its helping alot!
2007-08-04 08:01:04 · update #2
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.
2007-08-03 13:37:40 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
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.
2007-08-03 13:01:25 · answer #2 · answered by Atavacron 5 · 0⤊ 1⤋
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.
2007-08-03 13:10:03 · answer #3 · answered by Anonymous · 0⤊ 2⤋
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,
2007-08-03 13:11:48 · answer #4 · answered by Anonymous · 0⤊ 1⤋