Is it not enough that the IRS saps the joy out of our monthly paychecks and keeps us in mortal fear the entire month of April but now, it wants a piece of our "emotional distress" too? So now we may be taxed for being miserable and professionally compromised?
Really? I mean REALLY?
Suppose your former employer pays you $70,000 for "emotional distress" and loss of reputation. Is it taxable?
That's the issue in a tax case that has attracted widespread attention over the past year. Although the courtroom battling isn't over yet, the latest verdict is: Yes, that award is fully taxable.