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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 111524
Experience:  20+ Years of Employment Law Experience
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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: 6 months ago.
Category: Employment Law
Expert:  Law Educator, Esq. replied 6 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.
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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: https://www.irs.gov/publications/p525/ar02.html#en_US_2015_publink1000229507

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