IRS wants taxes from BP payments for lost wages

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And it only gets better at Obama’s oil spill

The Internal Revenue Service says oil spill victims who receive BP payments for lost wages will have to pay up come tax time.Under current law, BP payments for lost wages are taxable—just like the wages would have been, the IRS said in tax guidance issued Friday. Payments for physical injuries or property loss, however, are generally tax free. Payments for emotional distress? Taxable, though medical expenses related to the emotional distress are deductible.

Read more here.

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