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are settlements taxable

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J

jimmudge

Guest
seems like no one wants to answer any of my posts so i'll try another. are settlements in eeoc actions taxable? both those allowed under 706 g & compensatory & punitive.
 


cbg

I'm a Northern Girl
The reason I'm not answering your questions is that I don't know the answers. I don't know the answer to this one, either.
 
J

JoBarry

Guest
In looking over your past posts it looks like this is for sexual harrassment?? If so, ....here's an exerpt from the IRS website:

**************
Court awards and damages. To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. Include the following as ordinary income.

Interest on any award.
Compensation for lost wages or lost profits in most cases.
Punitive damages. It does not matter if they relate to a physical injury or physical sickness.
Amounts received in settlement of pension rights (if you did not contribute to the plan).
Damages for:
Patent or copyright infringement,
Breach of contract, or
Interference with business operations.
Back pay and damages for emotional distress received to satisfy a claim under Title VII of the Civil Rights Act of 1964.
***************************8
On the EEOC website it states the following: "Sexual harassment is a form of sex discrimination that violates Title VII of the Civil Rights Act of 1964."

You can figure it out.... If not get more info at the IRS.gov website at following link:

http://www.irs.gov/formspubs/display/0,,i1=50&genericId=11910,00.html

I am not a legal resource, just passing on info I found on the web. Joanna.
 

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