Disclaimer
The opinions expressed herein are my own personal opinions and do not represent anyone else's view in any way, including those of my employer.
© Copyright 2010
The opinions expressed herein are my own personal opinions and do not represent anyone else's view in any way, including those of my employer.
© Copyright 2010
How are sexual harassment settlements taxed, if at all, at the Federal level and, generally, at the State levels? Are they considered personal injury settlements and merely compensatory, or are they partially taxed?
The portion related to compensatory damages is tax free (except if the damages is related to lost wages, in which case it would be taxable since wages would normally be taxable). The portion related to punitive damages is taxable.
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4:35 am - July 23rd, 2010
The portion related to compensatory damages is tax free (except if the damages is related to lost wages, in which case it would be taxable since wages would normally be taxable). The portion related to punitive damages is taxable.
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