Section 35 Tax Issues to Consider

• Library: Damages 2012

It is beyond the scope of this chapter to analyze the tax issues involved in damages received either by settlement or verdict in employment cases. Counsel should, however, be aware of and discuss with their clients the tax issues and recommend that their clients consult with a tax attorney or certified public accountant when necessary. It is important for the employee to understand the tax consequences so that the employee can estimate his or her net proceeds and anticipate any tax obligation. The employer...