Tuesday, August 28, 2007

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.


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