How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 110427
Experience:  20+ Years of Employment Law Experience
Type Your Employment Law Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

So the eeoc just notified me that I was to receive 47,000(12,000

Customer Question

so the eeoc just notified me that I was to receive 47,000(12,000 bck wages and 35,000 compensatory damages) for an ADA ruling. I know the back wages are taxable but are the compensatory damages taxable?
Submitted: 5 months ago.
Category: Employment Law
Expert:  Law Educator, Esq. replied 5 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
According to the IRS code, some compensatory damages are taxable and they go on to say, " If the emotional distress is due to a personal injury that is not due to a physical injury or sickness (for example, unlawful discrimination or injury to reputation), you must include the damages in your income..." So, yes, legally it is taxable. See:

Related Employment Law Questions