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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4093
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I received a payment damage from my ex employer. As a result

Customer Question

hi
I received a payment for emotional damage from my ex employer. As a result of harassment during my pregnancy I had a miscarriage, then as a result of the miscarriage I had scared tissue in my uterus that cause to bleed out when I finally gave birth and almost lost my life. I can now never be pregnant again without potentially dying.
Now for that reason I was awarded emotional damage during a settlment.
Now my problem is how to file it on my taxes as Income or as none income.
Thanks
Submitted: 9 months ago.
Category: Tax
Expert:  PDtax replied 9 months ago.

Hi from just answer. I'm PDtax.

The injury settlement will be tax free unless you deducted any of the medical expenses you incurred.

Expert:  PDtax replied 9 months ago.

Your case is indirect medical, so I went to review the tax treatment.

"A personal injury settlement with a monetary award based partially on emotional distress or mental anguishmay be tax-free. If the emotional distress or mental anguish is directly related to a physical injury or physical sickness, it is considered "medical" and, therefore, non-taxable."

Expert:  PDtax replied 9 months ago.

http://www.alllaw.com/articles/nolo/personal-injury/settlement-tax-liability.html is the cite for that quote.

Thanks for asking at just answer. Please rate my assistance using the rating scale below. I'm PDtax.

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